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The fire is 5 percent contained.
More than 1,000 structures are being threatened.
Mandatory evacuations are in effect for the town of Bonny Doon, which is about 1.5 miles from flames. Over 2,000 people have been forced from their homes.
There are no reports of injuries.
The cause of the fire is under investigation.
The wildfire began in the area of Scott Creek Canyon, just west of the Lockheed Martin facility at about 7:20 p.m. Wednesday.
An evacuation center has been set up at Pacific Elementary School in the town of Davenport.
The American Red Cross has also established a shelter at Vintage Faith Church at 350 Mission St. in Santa Cruz.
KGO contributed to this story.