South San Jose Could Get Another Massive Data Center

(TNS) — Prologis aims to develop a three-story data center that would total 516,000 square feet in South San Jose, according to a proposal the company filed with city planners.

At 5977 Silver Creek Valley Road, the proposed center would include 30,000 square feet of office space, according to project plans.

The electricity capacity of the data center is 99 megawatts, according to Prologis. It will operate with an onsite substation and dedicated backup generation facility located in a generator yard, Prologis stated.

Annual water demand is expected to equate to 40 households. Irrigation requirements will be the primary driver of water use, followed by smaller levels of demand from data hall dehumidifiers and office activities.

Prologis said the site is a good location for a data center in part because it's in an industrial center and is near existing power hubs. Prologis suggested the location will enable energy to be readily delivered to the power center without big increases in electricity transmission systems elsewhere.

The 15-acre site is about 2 1/2 miles from a PG&E substation at 6402 Santa Teresa Blvd. in San Jose. Oakland-based PG&E recently doubled the capacity of the substation to 80 megawatts and has configured it so it can be readily expanded beyond its current capacity.

PG&E plans to expand substation capacity beyond the project's needs to serve additional customer needs, improving overall grid reliability for the surrounding community, according to information that Prologis provided to this news organization.

The real estate firm also committed to paying for some of the power-related infrastructure required for the data center, the company stated.

"Prologis will fund the transmission interconnection work needed for this project upfront," the company said. "The project will include a second, independently routed transmission line funded by Prologis, which will enhance system reliability and reduce reliance on backup generation."

The real estate firm said it intends to enroll in San Jose Total Clean Energy programs or a similar program that encourages carbon-free power consumption.

Prologis said its construction plans will minimize the data center development's impact on the community.

"The full buildout of the project as currently planned would take about two years, completed in phases," Prologis stated.

The data center project site is one of many properties that San Francisco-based Prologis came to own after it bought Duke Realty in 2022 for $23 billion. In 2021, a Duke Realty affiliate paid $40.2 million. The seller in the all-cash deal was Palo Alto-based real estate firm Peery Arrillaga.

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