{"id":296,"date":"2026-05-23T17:07:00","date_gmt":"2026-05-23T17:07:00","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=296"},"modified":"2026-05-23T17:07:00","modified_gmt":"2026-05-23T17:07:00","slug":"new-san-jose-power-hub-could-help-fuel-citys-ai-data-center-ambitions","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=296","title":{"rendered":"New San Jose power hub could help fuel city\u2019s AI, data center ambitions"},"content":{"rendered":"
\n
\n

SAN JOSE \u2014 A major new power hub rising downtown could help San Jose meet surging electricity demand from artificial intelligence, data centers, and other energy-hungry industries, as part of a broader push to strengthen the grid in the Bay Area\u2019s largest city.<\/p>\n

Read more Silicon Valley to get its first two-year degree focused on AI<\/a><\/p>\n

LS Power broke ground Wednesday on what the company calls its Skyline terminal at 200 Ryland St., an electricity complex that will connect to PG&E\u2019s adjacent Station B at 260 Coleman Ave. In 2023, an affiliate of LS Power paid $56.5 million for the 9.8-acre site.<\/p>\n

Once complete and connected to the PG&E grid, the LS Power hub, coupled with other efforts, will help deliver an additional 1,000 megawatts of transmission capacity to San Jose and the surrounding area as part of a $2 billion South Bay project, according to LS Power CEO Paul Segal.<\/p>\n

LS Power\u2019s projects in the South Bay will create enough transmission capacity for 1 million homes, Segal told this news organization.<\/p>\n

\u201cSan Jose needs to be the capital of power as much as it is the capital of Silicon Valley,\u201d Leah Toeniskoetter, CEO of the San Jose Chamber of Commerce, said in an interview with this news organization.<\/p>\n

LS Power said it has pursued multiple projects in San Jose because of positive economic prospects largely propelled by the region\u2019s tech industry.<\/p>\n

\u201cThe Bay Area is one of the most economically dynamic regions in the world, home to more than 7 million people,\u201d Segal said. \u201cIt\u2019s a hub for technology, advanced manufacturing and biomedical research. It\u2019s a region where demand for reliable and affordable electricity is accelerating.\u201d<\/p>\n

The new terminal is slated to be energized in 2028 once the project is completed, according to officials with LS Power, an electricity and infrastructure company that has launched multiple projects to bolster power capacity in the South Bay.<\/p>\n

\n<\/div>\n

\u201cThe project represents a transformative investment in San Jose\u2019s future,\u201d said San Jose City Councilmember Michael Mulcahy, whose district includes the site on Ryland Street. \u201cAs our city continues to grow, so does the demand on our electric grid.\u201d<\/p>\n

Read more Affordable homes project near San Jose BART station gets boost from real estate deal<\/a><\/p>\n

LS Power is undertaking two major projects to bring new power connections into San Jose totaling a combined 1,000 megawatts.<\/p>\n

One involves a 500-megawatt transmission line and related facilities between the Metcalf substation in South San Jose and PG&E\u2019s San Jose Station B.<\/p>\n

The other involves the development of a 500-megawatt electricity transmission link and other facilities between PG&E\u2019s existing Newark Substation in Fremont and the Northern Receiving Station in Santa Clara.<\/p>\n

\n<\/div>\n

Executives with LS Power said upgrades won\u2019t just be for the tech industry.<\/p>\n

\u201cEvery electricity customer in the region will benefit from these upgrades, whether that is is a family in a new home, a small business, electric vehicle charging networks, buildings that are undergoing electrification, or just a major-load customer like a manufacturing facility or a research facility,\u201d Segal said.<\/p>\n

It\u2019s uncertain how many homes, businesses, research labs, office buildings, data centers, shopping malls, schools, government buildings, hotels, or apartment buildings would be served by the transmission upgrades.<\/p>\n

The LS Power efforts in San Jose and nearby suggest the region remains in an advantageous position moving forward, according to Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.<\/p>\n

\u201cThis is another sign that San Jose and Silicon Valley are in growth and expansion mode, not in contraction,\u201d Staedler said.<\/p>\n

Read more Californians\u2019 credit scores rank 21st in US<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A power hub that’s poised to dramatically increase San Jose’s electricity capacity has gotten underway in the city’s downtown district, a project that could spur economic activity in the region.<\/p>\n","protected":false},"author":1,"featured_media":295,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nNew San Jose power hub could help fuel city\u2019s AI, data center ambitions - Next City Digest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextcitydigest.com\/?p=296\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New San Jose power hub could help fuel city\u2019s AI, data center ambitions - Next City Digest\" \/>\n<meta property=\"og:description\" content=\"A power hub that's poised to dramatically increase San Jose's electricity capacity has gotten underway in the city's downtown district, a project that could spur economic activity in the region.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nextcitydigest.com\/?p=296\" \/>\n<meta property=\"og:site_name\" content=\"Next City Digest\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-23T17:07:00+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/#\\\/schema\\\/person\\\/13065d40d633843429ac57d4e5c06f9b\"},\"headline\":\"New San Jose power hub could help fuel city\u2019s AI, data center ambitions\",\"datePublished\":\"2026-05-23T17:07:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296\"},\"wordCount\":616,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/nextcitydigest.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/b0013436e3dbf1b393628419a89ed400.webp\",\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296\",\"url\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296\",\"name\":\"New San Jose power hub could help fuel city\u2019s AI, data center ambitions - Next City Digest\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/nextcitydigest.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/b0013436e3dbf1b393628419a89ed400.webp\",\"datePublished\":\"2026-05-23T17:07:00+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/#\\\/schema\\\/person\\\/13065d40d633843429ac57d4e5c06f9b\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/nextcitydigest.com\\\/?p=296\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#primaryimage\",\"url\":\"https:\\\/\\\/nextcitydigest.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/b0013436e3dbf1b393628419a89ed400.webp\",\"contentUrl\":\"https:\\\/\\\/nextcitydigest.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/b0013436e3dbf1b393628419a89ed400.webp\",\"width\":1024,\"height\":682},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=296#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/nextcitydigest.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"New San Jose power hub could help fuel city\u2019s AI, data center ambitions\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/#website\",\"url\":\"https:\\\/\\\/nextcitydigest.com\\\/\",\"name\":\"Next City Digest\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/nextcitydigest.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/#\\\/schema\\\/person\\\/13065d40d633843429ac57d4e5c06f9b\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/nextcitydigest.com\"],\"url\":\"https:\\\/\\\/nextcitydigest.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"New San Jose power hub could help fuel city\u2019s AI, data center ambitions - Next City Digest","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nextcitydigest.com\/?p=296","og_locale":"en_US","og_type":"article","og_title":"New San Jose power hub could help fuel city\u2019s AI, data center ambitions - Next City Digest","og_description":"A power hub that's poised to dramatically increase San Jose's electricity capacity has gotten underway in the city's downtown district, a project that could spur economic activity in the region.","og_url":"https:\/\/nextcitydigest.com\/?p=296","og_site_name":"Next City Digest","article_published_time":"2026-05-23T17:07:00+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/nextcitydigest.com\/?p=296#article","isPartOf":{"@id":"https:\/\/nextcitydigest.com\/?p=296"},"author":{"name":"admin","@id":"https:\/\/nextcitydigest.com\/#\/schema\/person\/13065d40d633843429ac57d4e5c06f9b"},"headline":"New San Jose power hub could help fuel city\u2019s AI, data center ambitions","datePublished":"2026-05-23T17:07:00+00:00","mainEntityOfPage":{"@id":"https:\/\/nextcitydigest.com\/?p=296"},"wordCount":616,"commentCount":0,"image":{"@id":"https:\/\/nextcitydigest.com\/?p=296#primaryimage"},"thumbnailUrl":"https:\/\/nextcitydigest.com\/wp-content\/uploads\/2026\/05\/b0013436e3dbf1b393628419a89ed400.webp","articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/nextcitydigest.com\/?p=296#respond"]}]},{"@type":"WebPage","@id":"https:\/\/nextcitydigest.com\/?p=296","url":"https:\/\/nextcitydigest.com\/?p=296","name":"New San Jose power hub could help fuel city\u2019s AI, data center ambitions - Next City Digest","isPartOf":{"@id":"https:\/\/nextcitydigest.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/nextcitydigest.com\/?p=296#primaryimage"},"image":{"@id":"https:\/\/nextcitydigest.com\/?p=296#primaryimage"},"thumbnailUrl":"https:\/\/nextcitydigest.com\/wp-content\/uploads\/2026\/05\/b0013436e3dbf1b393628419a89ed400.webp","datePublished":"2026-05-23T17:07:00+00:00","author":{"@id":"https:\/\/nextcitydigest.com\/#\/schema\/person\/13065d40d633843429ac57d4e5c06f9b"},"breadcrumb":{"@id":"https:\/\/nextcitydigest.com\/?p=296#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nextcitydigest.com\/?p=296"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nextcitydigest.com\/?p=296#primaryimage","url":"https:\/\/nextcitydigest.com\/wp-content\/uploads\/2026\/05\/b0013436e3dbf1b393628419a89ed400.webp","contentUrl":"https:\/\/nextcitydigest.com\/wp-content\/uploads\/2026\/05\/b0013436e3dbf1b393628419a89ed400.webp","width":1024,"height":682},{"@type":"BreadcrumbList","@id":"https:\/\/nextcitydigest.com\/?p=296#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/nextcitydigest.com\/"},{"@type":"ListItem","position":2,"name":"New San Jose power hub could help fuel city\u2019s AI, data center ambitions"}]},{"@type":"WebSite","@id":"https:\/\/nextcitydigest.com\/#website","url":"https:\/\/nextcitydigest.com\/","name":"Next City Digest","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nextcitydigest.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/nextcitydigest.com\/#\/schema\/person\/13065d40d633843429ac57d4e5c06f9b","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/nextcitydigest.com"],"url":"https:\/\/nextcitydigest.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=\/wp\/v2\/posts\/296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=296"}],"version-history":[{"count":0,"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=\/wp\/v2\/posts\/296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=\/wp\/v2\/media\/295"}],"wp:attachment":[{"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nextcitydigest.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}