Valley Water Response to Data Centers in Gilroy

September 25, 2026

Valley Water has received letters regarding concerns with the Amazon Data Center in Gilroy. To clarify, Valley Water does not have land-use authority or a role in approving or permitting data centers.

As the recycled water wholesaler in South County, Valley Water is responsible for the overall development of the regional system in accordance with our recycled water master planning and South County water supply planning.

Valley Water is implementing long-standing plans to increase system reliability and redundancy, identified in our 2015 planning efforts. In addition, Valley Water is working with the City of Gilroy to ensure that all new infrastructure constructed by Amazon meets or exceeds Valley Water’s capital improvement standards.

To better understand and plan for future demand on the county’s water supply, Valley Water reviews and comments on environmental documents for development projects. Valley Water commented on the Environmental Impact Report for the Gilroy Data Center to encourage water efficiency.

For more information, see Valley Water’s recent news item on data centers.

Valley Water manages an integrated water resources system that includes the supply of clean, safe water, flood protection and stewardship of streams on behalf of Santa Clara County's 2 million residents. Valley Water effectively manages 10 dams and surface water reservoirs, three water treatment plants, an advanced recycled water purification center, a state-of-the-art water quality laboratory, nearly 280 acres of groundwater recharge ponds and 350 miles of waterways. We provide wholesale water and groundwater management services to local municipalities and private water retailers who deliver drinking water directly to homes and businesses in Santa Clara County.