San Jose Data Center Project Advances After City Council Rejects Appeal
The San Jose City Council unanimously rejected an appeal seeking to block a special use permit for a data center operation at 300 Holger Way in North San Jose. The facility, leased by NVIDIA from Menlo Equities, can use up to 20 megawatts of power, while opponents argued it required additional environmental review because of potential noise, air pollution and infrastructure impacts.
The San Jose City Council unanimously rejected an appeal from labor groups and residents seeking to overturn approval of a special use permit for data center operations at 300 Holger Way in North San Jose. The existing research and development building is leased to NVIDIA by Menlo Equities and will receive interior improvements, including data racks, with permitted power use of up to 20 megawatts.
Citizens for Responsible Industry argued the project should undergo a broader environmental review because supporting electrical, cooling and mechanical infrastructure could create noise, air pollution and other risks. City planners and Menlo Equities said the permit covers interior work in an existing building and does not authorize new construction; they described the operation as an existing NVIDIA chip-testing and research facility.
The decision comes as San Jose develops broader rules for data centers, including potential limits on water and energy use. Councilmember David Cohen said the city’s broad data center definition has contributed to public confusion, while opponents said the approval showed city leaders were not adequately protecting nearby residents and the environment.