Equinix is a publicly-traded real estate trust that operated 105 data centers around the world. They are planning to add up to 1 million SQFT of office space across five new buildings in South San Jose! This is one of their best performing markets and they want to make sure that they are preparing for the future.
If the project is approved, Equinix will build three, two-story data centers totaling 579,000 SQFT on former owned by Xilinx and another two, two-story data centers totaling 386,000 SQFT near its existing buildings on Great Oaks.
Many data center operators try to locate in Santa Clara which is serviced by the exceptional utility, Silicon Valley Power as opposed to PG&E. Silicon Valley Power not only sells their juice for far less than PG&E, but they are more reliable and provide better customer service. However, land has become so expensive in Santa Clara that the numbers are penning out better in San Jose despite PG&E. It also helps that Equinix has already laid out miles of fiber in South San Jose.
While data centers do not provide a ton of jobs, they do provide the city with significant tax revenue while requiring minimal city services. It is also tough to argue with more commercial development in residential-heavy South San Jose.