Amazon began construction on a 56-acre data center in Gilroy, California, using zoning rules established about 45 years ago, prompting complaints that modern public input opportunities were limited. Amazon and city officials say the project went through an extended approval process with public notices, but some residents say the formal comment window closed in 2024. Amazon pledges wastewater recovery infrastructure and greater outreach, while city leaders point to jobs, tax revenue and a $1 million donation for a fire truck. The dispute has renewed calls to update local zoning and public-engagement procedures.
Amazon Begins 56‑Acre Gilroy AI Data Center Under 45‑Year‑Old Zoning Rules, Sparking Community Outcry
Credit: Getty Images
Residents of Gilroy, California — about 30 miles southwest of San Jose — were surprised last month when construction began on a 56-acre Amazon data center in their city. Reporting from The Wall Street Journal shows the project advanced under local zoning rules enacted roughly 45 years ago, a framework residents say limited modern opportunities for public review and input.
Project Background
The site, a former stretch of farmland between a Walmart Supercenter and the Gilroy Premium Outlets, was first proposed in an application Amazon filed in 2020. City and company officials dispute some details of the permitting timeline: Amazon representatives say the approval process was lengthy and included public notices and formal comment periods, while some residents maintain they were effectively shut out because the formal comment window closed in 2024.
Local Responses And Concerns
Several Gilroy residents voiced concerns about water use and environmental impacts, especially given regional drought conditions. Rosa Rodriguez, a local resident, told reporters she was told the public-comment period had already lapsed. Critics argue that relying on decades-old zoning rules allowed the project to move forward without the kind of scrutiny now common for modern data-center developments.
“It didn't bother them that a food-distribution center came to Gilroy without their engagement, but now it bothers them that a data center is coming to Gilroy without them having the possibility of engagement,” said Gilroy Mayor Greg Bozzo.
Amazon And City Officials' Statements
Amazon says it has increased outreach to local residents, holding in-person meetings and an open house to answer questions. The company also told officials it will build a wastewater recovery system to meet on-site water needs and construct a pipeline to transport wastewater to the facility — steps intended to reduce reliance on local potable water supplies.
City leaders have emphasized the economic benefits: projected increases in tax revenue, construction jobs, and a reported $1 million donation toward a new fire truck. Amazon has also provided grants to local nonprofits and continued sponsorship of community events such as the Gilroy Garlic Festival.
What’s Next
For many residents the core issue is not Amazon’s presence per se but the perception that an impactful industrial project advanced with limited contemporary public engagement. Local officials say the situation highlights a need to modernize review processes and zoning rules so communities can better weigh the environmental and social consequences of large-scale developments in the future.
Help us improve.
