Amazon Web Services is constructing a $2 billion data center in Gilroy, California, approved by a city staffer last July. The 438,500-square-foot facility on 56 acres proceeded without a City Council vote or Planning Commission hearing, drawing local opposition after construction began.
The approval relied on industrial zoning criteria established 45 years ago. That framework allowed Gilroy's community-development director to greenlight the hyperscale project with a single signature, bypassing public scrutiny.
Mayor Greg Bozzo said other large industrial projects had cleared the same channel over the years without public controversy—food distribution centers among them. The difference with the Amazon project, Bozzo said, is its scale.
AWS applied to build the data center in 2020 after purchasing the 56-acre parcel. The company and city officials negotiated for five years. Emails show Amazon representatives grew impatient with government bureaucracy; one noted in a spring 2025 message that the project had faced delays exceeding a year.
Roger Wehner, vice president of economic development at Amazon Web Services, said the community had wanted earlier engagement. He said AWS has since met directly with residents and hosted an open house to address feedback.
Residents have raised concerns about water use in the agricultural region, fire risks from battery systems and the absence of public input during the approval process. Coleen Crew, an elementary school teacher, told the city council that many residents learned of the project only after construction started.
Rosa Rodriguez, a Gilroy resident, wrote to city staff in February requesting to comment on the environmental review report. Officials were cautious about public disclosures; Gilroy's fire marshal advised limiting technical details about Amazon's proprietary fire-suppression systems when residents asked about battery fire risks.
Gilroy city officials are now considering changes to their permitting process for large projects. A proposal would require future data center projects to gain planning commission approval, mandate developer-held community meetings and ensure notification for nearby residents.
The Gilroy case illustrates a broader pathway for hyperscale data center development across the United States. Tech giants have used legacy industrial zoning codes in municipalities to secure staff-level approvals, accelerating infrastructure buildouts for AI and cloud services while bypassing public hearings.
