# Gilroy approves temporary freeze on new data centers

> Source: <https://www.mercurynews.com/2026/09/14/gilroy-data-center-freeze/>
> Published: 2026-09-15 05:14:30+00:00

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GILROY — The Gilroy City Council on Monday night backed a temporary freeze on [new data centers in the city](https://www.mercurynews.com/2026/06/04/amazon-data-center-south-bay-gilroy/#) while more comprehensive rules are developed for such projects.

The unanimous vote follows community uproar over a massive Amazon data center taking shape on the city’s northeastern edge. Elected officials did not vote on that project because the 56-acre parcel had already been zoned for heavy industrial use.

The moratorium took effect immediately and will remain in place for at least 45 days, the city said in a statement.

While the freeze is in place, the city cannot accept, process or approve applications and entitlements for new data centers. The moratorium will not affect the current Amazon project, but it would halt a second data center the company is said to be considering.

“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 Monday evening.

“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,” he said. “The next phase is about working with the community to determine what standards are appropriate for Gilroy going forward.”

The city said its zoning code does not specifically define data centers as a distinct land use. Instead, data centers are classified under a broader category of “data processing establishments.”

Water use, electrical demand, noise and pollution are likely to be among the issues the city will take into account while developing new rules for data centers, the city said.

The city noted that the data center freeze could potentially be extended for up to two years.

*Check back for updates.*
