Sep 14, 2026
The Gilroy City Council unanimously approved a temporary citywide moratorium on new data center development during its meeting Monday to allow the city time to develop objective zoning, siting, development and operational standards. The interim urgency ordinance takes effect immediately for 45 da ys. Under state law, the council can extend the moratorium in two phases for a maximum total period of two years. During the pause, the city cannot accept, process, or approve applications and entitlements for new data center facilities. Although the city has received a pre-application from Amazon for a possible second facility, no formal application has been filed, and any future application would be subject to the moratorium. The ordinance does not affect the Amazon data center already approved and under construction in northeast Gilroy. The council adopted the moratorium under California Government Code Section 65858, which allows cities to temporarily prohibit certain land uses while considering changes to zoning regulations when immediate action is necessary to protect public health, safety and welfare. “Our residents have asked for a greater voice in decisions about major development in Gilroy, and we are listening,” Mayor Greg Bozzo said in a statement. “The Council’s action to place a temporary moratorium on data centers gives the city and community time to take a closer look at the standards that should apply to any future data center development. The next phase is about working with the community to determine what standards are appropriate for Gilroy going forward.” Gilroy’s current zoning code does not specifically define data centers as a distinct land use, instead classifying them under a broader category of data processing establishments. Led by the Community Development Department and the Planning Commission, the city will study potential changes to the Gilroy City Code and develop proposed recommendations for the council. The review is expected to consider a broad array of issues associated with data center development, including water use and cooling technology, electrical demand and grid capacity, noise, aesthetics and backup generator emissions. Community input will also be incorporated to help inform the evaluation. The moratorium follows other changes recently approved by the city council to increase public awareness and participation in the review of large commercial and industrial developments. Those updates expand notification and community engagement requirements and mandate Planning Commission review for projects requiring an Environmental Impact Report. The city will provide additional opportunities for community participation as the effort moves forward. Staff will report back to the city council before the initial 45-day moratorium expires, at which point the council may consider extending the measure under state law. ...read more read less
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