Gilroy has suspended applications for new data centers as the city considers new rules for where and how the facilities can be built.
The City Council unanimously approved the 45-day moratorium at its Monday meeting. The emergency ordinance took effect immediately, city officials said.
The moratorium — which prevents the city from accepting, processing or approving applications for new data centers — could be extended in two phases under state law, for a maximum of two years.
The move comes as Gilroy considers a possible second data center from Amazon. The company has submitted a pre-application, but no formal application has been filed.
The moratorium does not affect an Amazon data center already approved and under construction in northeast Gilroy, city officials said.
During the moratorium, the city aims to study potential rules covering issues such as water use, cooling systems, electricity demand, grid capacity, noise, appearance and emissions from backup generators.
“Our residents have asked for a greater voice in decisions about major development in Gilroy, and we are listening,” Mayor Greg Bozzo said.
The city said community input will be part of the review. After the initial 45-day moratorium expires, the council could consider extending the pause.
Concerns about data center projects have grown in response to the 438,500-square-foot Amazon Web Services Gilroy Data Center approved in July 2025, for which construction began in September. Residents have also voiced concerns about the city’s supposed lack of transparency about the data center development prior to the project’s administrative approval.