San Jose Pursues Data Centers as Residents and Lawmakers Raise Concerns

News Clip2:45KQED News·San Jose, Santa Clara County, CA·10/7/2026

San Jose is actively courting data center development for tax revenue, including a proposed 99-megawatt Prologis facility in South San Jose and additional complexes in North San Jose. Residents and some lawmakers oppose further construction because of power demands, emissions, noise, water use and neighborhood impacts, while the city considers stronger standards and California adopts related disclosure and cost-allocation rules.

oppositionenvironmentalannouncementgovernmentelectricitywatermoratorium
Gov: San Jose City Council, San Jose Planning Commission, City of San Jose, City of Santa Clara, California state government

San Jose leaders are seeking data center investment and announced a deal with Pacific Gas and Electric Company intended to guarantee power availability and expedited connections for as many as 10 major projects. Prologis is planning a three-story, 99-megawatt facility in South San Jose with 44 diesel backup generators, while at least three additional complexes could be developed in the Alviso neighborhood of North San Jose.

Residents, including Ken Thompson, have raised concerns about the projects' proximity to homes, diesel and natural-gas emissions, low-frequency noise and possible public-health effects. Council member Kevin Park has called for a halt to additional development, citing pressure on the power system and infrastructure costs, while Silicon Valley Leadership Group CEO Ahmad Thomas defended the projects as responsibly developed. San Jose is holding community listening sessions as it considers stronger design and regulatory standards, and California Gov. Gavin Newsom has signed bills addressing electricity cost allocation and disclosure of projected data center water use.