Microsoft to Build 48 Megawatt Data Center in Silicon Valley

News Clip2:11NTD·CA·6/11/2026

Microsoft has begun the second phase of development for a 48-megawatt data center in Alviso, San Jose, California. The project emphasizes sustainability, promising to use renewable energy, recycled water, and provide power backup to the grid during blackouts. San Jose city officials have implemented policies to ensure the facility benefits the community and responsibly manages resources.

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Microsoft
Gov: City of San Jose

In Alviso, a district within San Jose, California, Microsoft has initiated the second phase of development for a new 48-megawatt data center. The project, located at a 65-acre site in Silicon Valley, involves working with H.I.T.S., a top U.S. contractor. This facility is being positioned as a leader in sustainability, specifically concerning its power infrastructure and commitment to renewable energy and recycled water use.

San Jose Mayor Matt Mahan emphasized the city's proactive measures to prevent overconsumption of resources by the data center, a concern raised by similar developments nationwide. He stated that San Jose has intentionally designed its policies and regulatory environment to ensure new data centers are "additive" to the community. The project is designed to be a "win-win," offering power backup to the grid during blackouts by pausing its operations and injecting energy into the community, as well as expanding the local recycled water system.

The multi-phase effort is intended to support the increasing demand for cloud services and digital transformation, generating construction jobs and fostering growth within Silicon Valley's tech ecosystem. The data center is projected to be completed in 2027.