San Jose has forged a powerful alliance with PG&E to strengthen the city's electrical grid and meet the soaring energy demands from data centers. This collaboration positions San Jose as the West Coast's leading hub for data centers, with PG&E committing to upgrades that support 2,000 megawatts of new power demand. Such enhancements will triple the city's energy capacity, drawing in global companies eager to invest in a reliable infrastructure. This move highlights San Jose's proactive stance in fostering technological advancement and economic vitality.
The partnership includes a substantial $2.6 billion investment from PG&E into existing and new infrastructure projects. These efforts will enable immediate access to 250 megawatts of power for developers, accelerating construction and operations. One standout initiative is the Westbank net-zero community in Downtown San Jose, which integrates three data centers with over 4,000 residential units. This project features a heat-capture system that reduces energy costs for nearby residents and promotes low-carbon heating for environmental gains.
Beyond infrastructure, the deal promises significant employment opportunities, with projections of nearly 200,000 new jobs, primarily in construction. These positions will bolster the local workforce and contribute to broader prosperity. PG&E anticipates that the increased demand from data centers could lower monthly electricity bills for customers by 1% to 2% per gigawatt supplied, making energy slightly more affordable while generating tax revenue for city services.
Source: SVBJ
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