Amazon Web Services (AWS) is building a 438,500 square-foot data center in Gilroy, California, on a 56-acre undeveloped parcel. This project, approved by the Community Development Director without public hearings due to a withdrawn appeal, has sparked considerable local opposition. The facility is expected to be constructed in two phases, with the first phase anticipated to be online in 2028.
The project is slated to bring substantial financial benefits to Gilroy, including an estimated $40 million in new revenue over the first ten years through property and utility user taxes, which will support local services like police, fire, and road maintenance. AWS also projects a $2 billion investment will diversify the local economy, generating $532 million in gross domestic product and creating about 90 on-site jobs plus an additional 160 full-time jobs in the broader community. Initial annual revenue is estimated at $1.6 million, growing to approximately $6 million per year at full build-out.
A significant concern among residents is water usage. At full capacity, the data center could use up to 18 acre-feet of water per year, equivalent to the usage of about 325 homes. Initially, the facility will use about 5,480 gallons of potable water per day. However, Amazon has committed to transitioning the majority of its industrial water needs, particularly for cooling, to recycled water by 2030, funding the necessary infrastructure itself. This transition is a condition for the second phase of the project, significantly reducing potable water use to an estimated 1,728 gallons per day for domestic purposes once recycled water is implemented.
Environmental impact assessments identified two "Significant and Unavoidable Impacts": the conversion of Prime Farmland to non-agricultural uses and an exceedance of vehicle miles traveled thresholds. Despite mitigation measures, these impacts remain. The project includes twenty-five 2.5 MW emergency generators for the first phase, and the second phase will utilize battery or fuel cell technology for backup power. Amazon acquired the 66 acres of farmland for the project in 2022, with the land zoned for industrial use.
Local residents, expressing concerns about the lack of public input, water consumption, and environmental effects, are attempting to engage Amazon and local officials to address these issues. AWS, for its part, has invested $310,000 in local grants since 2023 to support community projects.
