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Amazon’s Secretive $2B Gilroy Data Center Draws Local Backlash

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16

Why it matters

Amazon Web Services is constructing a 438,500-square-foot data center campus on a 56-acre site in Gilroy, California. The two-phase project at 8050 Camino Arroyo received entitlement approval on July 3, 2025, with grading and utility permits issued December 11, 2025, and a building permit on March 19, 2026. The facility is now under active construction. The first phase will demand 49 MW of power and include two data center buildings, a security structure, backup generators, and battery storage systems.

The City of Gilroy approved the project through Community Development Director Sharon Goei rather than a city council vote, following a multi-year environmental review under the California Environmental Quality Act. AWS purchased the land in 2020 for approximately $31.28 million, with plans first disclosed publicly in 2022. The permitting process proceeded largely without public attention until construction became visible. More than 1,000 residents have signed a petition opposing the project, citing concerns about its industrial scale and power requirements that only recently became apparent to the community.

Attorneys should monitor this project as a test case in how large-scale AI and cloud infrastructure facilities navigate local land-use approval processes. The lack of a public vote on a major industrial project—despite its size and community impact—raises questions about administrative discretion in California land-use decisions and may invite legal challenges on CEQA compliance or procedural grounds. The visible construction phase and organized opposition create a window for residents or advocacy groups to pursue administrative remedies or litigation if they believe the approval process was deficient.

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