Data Center Boom Heads for Silicon Valley’s Backyard

Infrastructure Advantage in San Jose - San Jose is uniquely positioned with 2 gigawatts of new power capacity coming online in the next four years, making it the only city in California with such capacity [1][5][8] - This location in north San Jose offers access to ample recycled water at a reasonable rate and a new transmission line [2] - San Jose's infrastructure allows it to potentially triple its energy consumption in the next 4-5 years [8] Data Center Development - Prologis is proposing to build 400 megawatts worth of data centers in San Jose [3] - The location near a wastewater treatment facility and landfill is ideal for data centers as servers are not affected by odors [4][5] - The site is underutilized land, avoiding displacement of housing or retail [19][20] Energy and Sustainability - San Jose uses a community choice aggregator to purchase power, signing 20-year power purchase agreements to fund new generation capacity [10][11] - The city is investing in solar and wind power paired with storage to address intermittency issues and increase the renewable mix on the grid [11][12][15][16] - While the city aims for clean energy, it cannot guarantee that no power from nuclear or natural gas will be used, as power comes from the grid [14][15] Market Demand - There is a robust pipeline of interest from hyperscalers, large tech companies, and advanced manufacturing users for the new power capacity [17][18] - A cluster study last year showed over 800 megawatts worth of demand in San Jose, and it is suspected to be higher now [18]