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Amazon Faces Backlash After Using 45-Year-Old Zoning Rule To Advance Gilroy Data Center

Amazon Faces Backlash After Using 45-Year-Old Zoning Rule To Advance Gilroy Data Center
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Amazon filed plans in 2020 for a 438,500-square-foot data center on 56 acres of Gilroy farmland. Residents say most only learned of the project after construction began and were told the public comment period closed in 2024. Critics allege the company relied on a 45-year-old zoning rule to avoid broader review, while Amazon and city officials cite jobs, tax revenue and donations — including $1 million for a fire truck — as benefits. The dispute centers on transparency and community input.

Residents of Gilroy, California, say they were largely unaware of plans for a massive Amazon data center until construction was already underway, and they accuse city officials of relying on an old zoning provision to sidestep broader public review.

Project Overview

The planned facility is a 438,500-square-foot data center on 56 acres of farmland roughly 30 miles south of San Jose, sited between a Walmart and a local shopping center. Amazon first submitted plans in 2020. Residents say they were told the public comment period closed in 2024—before many learned about the project.

How The Project Advanced

Critics allege the company and city officials used a 45-year-old zoning rule, originally intended for industrial development along a freeway, to allow the project to move forward without the usual level of public planning scrutiny and community review. Opponents say that interpretation effectively limited residents’ ability to weigh in.

Local Reaction

Organized opposition has formed in response. College student Landon Sepulveda told The Wall Street Journal there is a trust gap between residents and the city:

"These processes were not enough for the citizens of Gilroy to do anything about it. We've elected them to tell us, and we shouldn't have to watch over their shoulders."
Elementary school teacher Coleen Crew told a council meeting:
"Many if not most residents first learned about this project after construction had already begun."

City And Amazon Responses

City leaders and Amazon have emphasized anticipated benefits such as jobs, tax revenue and steps intended to address resource concerns. Mayor Greg Bozzo described the development as "an opportunity to change the way that we do business in Gilroy. We're adapting to the times."

Amazon Web Services' Vice President of Economic Development, Roger Wehner, said the project "followed standard approval processes" and noted the company has since met with residents and hosted an open house to answer questions.

Amazon has also pledged local contributions, including a $1 million donation toward a new city fire truck, donations to nonprofits and support for the Gilroy Garlic Festival. The company has reportedly arranged for wastewater diversion to serve the facility as well.

Why It Matters

The dispute highlights tensions common to modern large-scale infrastructure projects: the potential economic benefits (jobs, tax revenue and local investment) versus community concerns about transparency, resource use and local control. While construction appears likely to continue, many residents say the main issue is meaningful participation in decisions that affect their town.

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