California cities adopt moratoriums on new data center development

Several California cities are implementing moratoriums on new data center developments to evaluate their impact on local resources and infrastructure.

The Gilroy City Council unanimously approved a temporary 45-day moratorium on new data center projects. This measure allows officials to develop specific zoning, siting, and operational standards. Under state law, the moratorium could be extended for a total of up to two years. While the pause will not affect the ongoing construction of an Amazon Web Services facility on Camino Arroyo, it will prevent the approval of new applications. This move follows similar actions in neighboring Morgan Hill.

In Richmond, the City Council is considering a similar 45-day urgency ordinance. Proponents of the pause, including environmental justice groups, cite concerns regarding the substantial electricity, water, and land resources required by these facilities, as well as potential impacts on air quality, noise, and the electric grid. If passed by a four-fifths vote, the moratorium would halt all new permits and entitlements for data centers while the city conducts a public planning process.