Data center could open in 2030 in North San Jose pending project approval

SAN JOSE — Pending city approval and an agreement with state regulators to expand a nearby PG&E substation, a planned three-story data center in North San Jose could be operational sometime in 2030, public records show.

At 326 Charcot Ave., the data center would total 514,000 square feet and replace five industrial buildings near the corner of Zanker Road and Charcot Avenue, according to a proposal by national real estate firm Prologis. It also would include 30,000 square feet of office space.

The complex is expected to have a total power capacity of 99 megawatts with an onsite substation and backup generator in a dedicated yard.

“The PG&E facilities needed to serve the project would consist of an expansion of the existing PG&E Trimble substation to add switchgear that will connect to two transmission lines,” Prologis stated in the proposal.

PG&E’s substation is located on Component Drive, between North First Street and Orchard Parkway. Transmission lines would connect to the data center’s on-site substation.

The state Public Utilities Commission, PG&E’s principal regulator, is responsible for issuing a final decision on the proposal to expand the Trimble substation and add the lines.

San Francisco-based Prologis intends to fund all costs to hook up the data center to the electricity grid, including any PG&E substation upgrades required for interconnection.

The real estate firm also plans to include and fund a second, independently routed transmission line to enhance system reliability and reduce reliance on backup generation.

Prologis expects to enroll in San Jose’s Total Clean Energy program or something similar with a goal of 100% carbon-free electricity.

Construction of the data center could begin in the first quarter of 2028. It would require 22 months to complete. Off-site PG&E upgrades also would start sometime in 2028.

Data centers have encountered opposition in some Bay Area cities and around the country amid concerns over environmental impacts, electricity bills, and water use. The tech industry views them as a crucial factor in creating enough computing power for technologies such as artificial intelligence.

Oakland-based PG&E reports that its pipeline of proposed data centers totaled 12.71 gigawatts at the end of June, more than double its data center pipeline of 5.09 gigawatts at the end of March.

With growing demand, PG&E launched efforts to greatly expand its substation facilities in San Jose through an array of endeavors.

In February, San Jose officials disclosed PG&E was on track to provide power hookups for a dozen unnamed major projects in the city by 2030.