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Morgan Hill
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December 2, 2021

Amazon buys Gilroy ag land

Company expanding data services

Tech giant Amazon purchased 66 acres of farmland in Gilroy under its data services subsidiary, according to property records filed Aug. 14.

Seattle-based Amazon Web Services purchased the land on Camino Arroyo, just south of the Gilroy Premium Outlets and behind See Grins RV and the Gilroy Unified School District offices.

Southpoint Business Park Associates, which consists of developers Glen Loma Group and Arcadia Associates, sold the property to Amazon, according to the grant deed filed with the county recorder’s office.

The sale price was not disclosed. Representatives from Amazon and the developers did not return a request for comment as of press time.

As of June 30, the three parcels Amazon purchased were valued at $7.4 million. The farmland is zoned as industrial.

The purchase is part of Amazon Web Services’ expansion in Silicon Valley and the nation.

In December, Amazon purchased a 700,000-square-foot plot of land in Santa Clara for $100 million. Around the same time, the company purchased 100 acres in Chantilly, Va. to construct a data center facility.

Amazon launched the data services unit in 2006. The business has posted record profits in recent years as the demand for such services skyrockets. According to Business Insider, Amazon Web Services generated $35 billion in revenue in 2019.

The Amazon deal marks another tech behemoth that has purchased land in Gilroy in less than a year.

In October, Google purchased a nearly 40-acre plot of land on Rossi Lane for $2.1 million. According to the company, the land will be used as a tree nursery to provide foliage for its office campuses in the Bay Area.

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