OpenAI has been circling a 70,000-square-foot building at 2950 Zanker Road in North San Jose, a box whose real prize is not the floor plate but the 19 megawatts of electrical capacity already wired into it. People familiar with the talks said a lease with landlord Peninsula Land & Capital may already be signed. OpenAI did not comment. Roger Fields’ firm bought the property in 2024 after Electric Hydrogen had poured extra power into a site that already sat on a fat electrical feed.
That feed is why the rent under discussion was reported above $6 per square foot per month, more than double the recent asking average for North San Jose research-and-development space. Brokers have been listing ordinary R&D product in the low-to-mid twos. A tenant willing to pay triple that rate is not shopping for cubicles. Colliers has marketed the same address as high-performance industrial space with lab rooms, a data-center designation, five grade-level doors, a fenced yard of nearly 21,000 square feet, and 19 megawatts available, language aimed at hyperscale computing and heavy manufacturing rather than a conventional office user.
North San Jose has spent decades as a semiconductor and R&D corridor along Zanker, First Street, and the airport fringe. Vacancy in the submarket has been elevated while companies handed back older campuses, yet the buildings that already hold serious power have not sat idle. Figure AI, Credo, Archer Aviation, and others have taken large blocks nearby. The same shortage of ready megawatts that pushed Bloom Energy and Heron Power into expansion mode is now pulling AI names toward industrial shells instead of glass campuses. OpenAI has also been linked to a much larger Mountain View office deal; a Zanker lease would be a different kind of footprint, smaller in people and larger in watts.
San Jose officials have treated data-center and high-load users as a tax and utility revenue play when the projects stay inside existing industrial districts. Nineteen megawatts is modest next to the multi-gigawatt campuses OpenAI has announced in Ohio and Georgia, which is part of the point. A 70,000-square-foot building already on the grid can come online without a new substation fight. If the lease closes, North San Jose will have another reminder that the next wave of Silicon Valley demand is arriving first where the wires already are.
Source: Silicon Valley Business Journal
