New San Jose power hub could help fuel city’s AI, data center ambitions
LS Power has broken ground on its new Skyline terminal in downtown San Jose, a major power hub designed to significantly increase the city's electricity capacity. This project aims to meet the surging demand from AI, data centers, and other energy-intensive industries in the Bay Area. Once complete in 2028, it will add 1,000 megawatts of transmission capacity to the region.
LS Power has initiated construction on its Skyline terminal at 200 Ryland St. in downtown San Jose, a substantial electricity complex intended to bolster the city's power grid. The project, which broke ground on Wednesday, will connect to PG&E's adjacent Station B and is a key component of a $2 billion South Bay initiative.
According to LS Power CEO Paul Segal, the completed hub, along with other related efforts, will deliver an additional 1,000 megawatts of transmission capacity to San Jose and the surrounding area, enough to power 1 million homes. This increased capacity is crucial for accommodating the growing electricity demands of artificial intelligence, data centers, and other technology-driven industries in Silicon Valley. San Jose City Councilmember Michael Mulcahy emphasized the project's importance for the city's future growth and its electric grid.
LS Power is undertaking two main projects to achieve this 1,000-megawatt increase: one involving a transmission line between Metcalf substation and PG&E's San Jose Station B, and another linking PG&E's Newark Substation in Fremont to the Northern Receiving Station in Santa Clara. While critical for the tech sector, LS Power states that all electricity customers in the region, including homes and small businesses, will benefit from these upgrades. The new terminal is expected to be energized in 2028.