Amazon reportedly uses 45-year-old rules to get around AI data center opposition - California residents left fuming after Gilroy facility begins construction

Smile, it’s another Amazon data center

by · TechRadar

News By Christian Cawley Published 11 August 2026

(Image credit: Getty Images)

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  • Amazon revealed plans to build Gilroy, California data center were first submitted in 2020
  • Gilroy citizens have accused the city council of inadequate communications concerning the development
  • The 438,500-square-foot data center occupies a 56-acre chunk of farmland 30 miles south of San Jose

Citizens of Gilroy, California, have expressed dismay at the building of an Amazon data center, which they say they were not informed of - and when one resident attempted to lodge a complaint, she was told that comments on the plans were closed in 2024 – long before most citizens were even aware of the planned installation.

Occupying a 56-acre area of farmland between a Walmart and a local shopping center, the Amazon project appears to have been quietly pushed through using obfuscation and clever use of 45-year-old planning laws.

Amazon has apparently made provision to divert wastewater to the data center, and donated money for local spending. Meanwhile, the city mayor has responded to the concerns by likening the water-and power-hungry Amazon data center to a food distribution center that was also recently approved.

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Opposition and sponsorships

Utilizing the old city zoning rule – originally intended for industrial development along a freeway – has enabled the data center to proceed into full development without planning scrutiny from residents. However, the apparent collaboration between Amazon and the Gilroy city council and mayor has not gone unnoticed, with opposition organized against the project.

One of those organizers, 21-year-old college student Landon Sepulveda, indicated to the Wall Street Journal that there was a trust issue between the population and the city administrators. “These processes were not enough for the citizens of Gilroy to do anything about it. We’ve elected them to tell us, and we shouldn’t have to watch over their shoulders.”

Another citizen, elementary school teacher Coleen Crew, told a recent council meeting “Many if not most residents first learned about this project after construction had already begun.”

Amazon and the Gilroy council have been at pains to highlight the advantages of the deal, citing jobs, tax revenue, and that solution to concerns over water use. Amazon has also donated $1 million for a new city fire truck, and donated money to non-profits and the city’s annal Gilroy Garlic Festival.

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