The Morgan Hill City Council voted unanimously Oct. 21 to extend its moratorium on new land use applications for freestanding data centers and grid-scale battery energy storage systems for 22 months and 15 days, the maximum extension allowed under state law.
The interim ordinance bars the city from receiving, accepting, processing or approving applications for the two uses while city staff develops a full policy for handling them. It follows an initial 45-day moratorium the council approved Sept. 16.
Morgan Hill Development Services Director Jennifer Carman told the council that staff does not anticipate needing the full duration of the moratorium and will try to bring an ordinance back sooner. The moratorium will be repealed once the council adopts regulations.
Mayor Mark Turner said although the process could be completed much sooner than the final expiration of the moratorium, the extension gives city staff necessary breathing room to build a robust policy.
“This moratorium does provide the opportunity that we’re looking for in order to develop the policies that we need,” Turner said. “That period of time does allow us to have conversations on the dais, research by the staff, collaboration with our community, with our labor partners, everybody contributing to that conversation.”
Staff said it could update the council during its goal-setting session in February.
The Oct. 21 meeting was attended by representatives of multiple trade unions who organized to speak against the moratorium. Speakers from UA Local 393, the Sheet Metal Workers Local 104 and IBEW Local 332, urged the council to reject the extension.
Scott Reese, a representative for UA Local Union 393, said a moratorium denies skilled laborers lucrative job opportunities building high-tech facilities and supporting infrastructure. Reese urged the council to work collaboratively with trade unions to develop policy.
“This decision affects more than land use policy,” Reese said. “It affects working families, apprenticeship opportunities, local businesses and the skilled workforce that keeps our communities running.”
Other speakers backed the extension, noting that the new technology could have unforeseen negative effects on residents.
“The need for a comprehensive study is crucial, and so I commend the council for recognizing that,” said resident and mayoral candidate Deborah Africa, speaking during public comment. “Before considering these facilities, we need clear answers about water use, power demand, noise, air quality and fire safety.”
The city’s existing regulations do not provide for either use, according to the ordinance, which says data centers and battery storage facilities “may impose significant demands on public utilities and infrastructure and create unforeseen land use impacts.”
The moratorium was passed in response to an Amazon data center in neighboring Gilroy breaking ground last year after passing approval by city staff with minimal opportunity for public engagement, bypassing city council and planning commission approval by taking advantage of outdated regulations.
“This is not about a ban on data centers,” Turner said. “We’re open to the idea, but we have to have the criteria that enables us to find out what best fits within our community.”
The Gilroy City Council has also adopted a moratorium on data centers, which they recently extended. That city’s moratorium will have no impact on the development of the Amazon center on Camino Arroyo.
