Amazon Bypassed Resident Vote to Build AI Data Center in California

Photo: Tom's Hardware
Quick answer
Amazon built a data center in Gilroy, California, using outdated 1979 zoning rules to avoid public discussion.
In Gilroy, located 50 km from San Jose, California, construction has begun on a large Amazon data center. The project spans 23 hectares of agricultural land between a Walmart shopping center and the Gilroy Premium Outlets. The development came as a surprise to many residents, as Amazon leveraged outdated zoning rules from 45 years ago to avoid broad public discussion.
The project’s approval process started in 2020 but was delayed for years due to disputes between Amazon and city officials. Company representatives expressed frustration over slow permit approvals, while city officials refused to revisit already closed matters. Despite formally following procedures, including public notices and a comment period, residents missed the opportunity to raise concerns in time.
A major concern is the potential strain on the region’s water resources, which already suffers from drought. Amazon assured it is building a wastewater treatment system for its needs and plans a pipeline to source water externally. The company also highlights economic benefits for the city, including increased tax revenue, job creation, and charitable initiatives, such as sponsoring the local garlic festival and funding firefighting equipment purchases.
Gilroy Mayor Greg Bozzo acknowledged that similar industrial projects were previously approved without resistance, but residents are now more engaged in discussions about data centers’ environmental and infrastructural impact. He expressed willingness to review approval processes for large projects to better incorporate community input in the future.
Common questions
- Why couldn’t Gilroy residents influence Amazon’s data center construction?
- The project was approved under 1979 zoning rules, which did not require mandatory public discussion. The comment period closed in 2024 before data centers became a pressing local issue.
- What arguments does Amazon present to justify the construction?
- Amazon states it is building a wastewater treatment system for its needs and plans a pipeline for water supply. The company also promises economic benefits, including tax revenue, job creation, and charitable programs.
- How do Gilroy authorities explain the situation?
- The mayor acknowledges that similar projects were previously approved without resistance, but residents are now more concerned about the impact of data centers. Authorities are considering changes to the approval process.
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