Gilroy's City Council voted unanimously on Monday, Oct. 19, 2026 to extend its temporary ban on new data center projects until Sept. 3, 2027, San Jose Spotlight reported. The original 45-day moratorium would have expired Oct. 29.
Why it matters:
- The Amazon data center under construction on a 56-acre site at 8050 Camino Arroyo is not affected.
- A second Amazon Web Services project at Highway 152 and Camino Arroyo, now only a pre-application, is on hold while the moratorium lasts.
- The council can extend the pause once more, for up to 12 months, under state law.
Why Gilroy wants more time
Gilroy's zoning code doesn't define data centers as a distinct land use; they fall under "data processing establishments," the city says. During the pause, staff will draft standards on water use and cooling, electrical demand, backup generators, emissions, noise and traffic.
"The goal is to further enhance protections to public health, infrastructure and neighborhood quality of life," City Administrator Matt Morley told San Jose Spotlight. He said the work couldn't be finished within the initial 45 days, and the city aims to have draft standards ready before the moratorium expires.
What Amazon says
Amazon representatives have said the company is investing in local land conservation and water replenishment, using 100% carbon-free energy for the data center, committing to 100% recycled water by 2030 and covering infrastructure costs so residents don't foot the bill, Spotlight reported.
Across the Bay Area
Gilroy joins a list of cities pausing data centers this month, including Hayward and Richmond and Oakland. San Jose is writing uniform data center rules instead of a moratorium.