Gilroy News: City Council Pauses New Data Centers for 45 Days While Reviewing Water, Power and Noise Rules

GILROY NEWS | 2026 COMMUNITY REPORTING

Gilroy’s City Council unanimously adopted a temporary pause on new data-center applications on September 14, 2026, following months of public questions about development of large industrial facilities. The ordinance took effect immediately for an initial 45-day period, while city officials consider new standards for facilities that consume significant electrical power and may require cooling systems and backup generators.

What the moratorium actually does

While the urgency ordinance is active, the city cannot accept, process or approve new data-center development applications. Under state law, the City Council may extend the moratorium after additional public action, but the September vote alone does not create a permanent ban. The initial 45-day period runs toward late October; any further extension must be confirmed by an updated council record.

What happens to Amazon’s existing project

The city explicitly says the pause does not revoke permits granted for the Amazon Web Services data center already under construction in northeast Gilroy. Officials also report receiving a pre-application for a potential second AWS facility but no formal application. That potential project would be subject to the new-data-center restrictions while the moratorium remains in force.

The issues residents raised

City staff will examine how data centers should be treated in zoning and site planning. Topics identified for review include water use and cooling, electricity demand, grid capacity, generator emissions, noise, appearance, and traffic. The city also approved broader changes in August to improve public notice and Planning Commission review of major industrial and commercial developments.

How the community can participate

New standards would be developed through the Community Development Department, Planning Commission and City Council, with further chances for public input. Residents can follow meeting agendas and the city’s data-center project page. Gilroy News will distinguish proposal, enactment and any extension of the September moratorium instead of assuming a future vote has already occurred.

Official primary sources

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