San Jose's Energy Surge: Doubling Power Capacity for Data Center Boom

San Jose is preparing to double its current power usage with two gigawatts of new capacity arriving over the next five years. This expansion targets areas ripe for development, including greenfield sites and empty warehouses ready for transformation. PG&E is committing $2.4 billion to upgrade infrastructure, ensuring reliable energy delivery that supports rapid growth in the tech sector.

Data centers emerge as a key focus, with city leaders highlighting their potential to benefit everyone. These facilities could generate utility tax revenue to fund essential services like police, fire departments, and libraries. At the same time, the added load from data centers might reduce residential utility rates by spreading infrastructure costs across a broader base, preventing hikes for existing customers.

To streamline progress, San Jose has formed a dedicated data center development team. This group guides developers through city processes, accelerating projects across the city's 180 square miles of available land. The initiative invites investment, positioning San Jose as a competitive alternative in Silicon Valley despite past challenges like high costs and power limits.

As neighboring areas like Santa Clara also enhance their capacities, the region as a whole strengthens. For residents and businesses, these developments promise jobs, economic vitality, and a forward-looking city embracing the demands of advanced technology.

Source: SVBJ

Two More Data Centers Coming to North San Jose

The Trimble Business Area stands to gain a major boost with Goodman Group's recent acquisition of a 46-acre site for $200 million. The global firm plans to develop two data centers on the property at 350 and 370 West Trimble Road, creating the Goodman Innovation Center San Jose. Set to deliver 414,000 square feet of space and 97.3 megawatts of power by 2028, this project positions the city as a key player in the expanding digital infrastructure sector. Existing R&D buildings on the site, partially occupied by Lumileds, will become available for lease in October 2026, offering over 500,000 square feet for new tenants.

The development aligns with San Jose's role as a top hub for data centers in Silicon Valley. Despite challenges like power constraints and high costs, initiatives like this one demonstrate the area's resilience and appeal to international developers. Goodman Group, known for managing logistics properties and data centers worldwide, acquired the site from an affiliate of LBA Realty, which had earlier proposed a smaller data center there. The location's proximity to a Microsoft-owned parcel with its own data center plans further enhances the region's tech ecosystem.

Source: SVBJ

PG&E Partnership Fuels San Jose Data Center Boom and Job Surge

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