Data center is being eyed on part of longtime San Jose tech campus
Menlo Equities has proposed a 444,400-square-foot data center on a former Western Digital campus in South San Jose, requiring 99.7 megawatts of power. The project is consistent with the site's industrial zoning, despite its proximity to residences. San Jose city leaders are reportedly open to data center developments, viewing them as a source of significant revenue.
Real estate firm Menlo Equities has proposed a substantial 444,400-square-foot data center for a portion of the longtime Western Digital campus in South San Jose, California. The facility, which would include an on-site substation, is projected to require 99.7 megawatts of total power, with 72 megawatts dedicated to critical backup. The design incorporates air-cooled chillers operating on a sealed, closed-loop water recycling system, and backup generators meeting U.S. Environmental Protection Agency's Tier 4 emissions standards.
The proposed complex would be located along Charlotte Drive, nestled between Lexington Avenue and Raleigh Road. Land-use expert Erik Schoennauer, a consultant for Menlo Equities, noted that despite its proximity to homes, shops, and restaurants, the project aligns with the site's decades-long industrial zoning designation. Plans also include the development of public open space at the corner of Charlotte and Lexington.
The proposal comes amidst a growing trend of data center developments across North San Jose, the Alviso district, and South San Jose, indicating an increased receptiveness from city leaders. A March report, prepared for San Jose Mayor Matt Mahan and the City Council by Deputy City Manager Manuel Pineda, outlined the economic benefits, estimating that a 50- to 99-megawatt data center could generate between $3 million and $6 million in unrestricted annual revenue for city services once fully operational. The report also emphasized that data centers demand limited public services and do not contribute to increased traffic or public safety demands akin to residential projects.
While San Jose officials highlight the financial upside and the city's ability to retain digital economy activity, other Bay Area communities, including Oakley, Pittsburg, Brentwood, Gilroy, and Hayward, have seen significant skepticism and opposition to data center developments. Opponents commonly raise concerns regarding potential environmental impacts, excessive water consumption, and health hazards associated with these facilities.