Data center is being eyed on part of long-time San Jose tech campus
Menlo Equities has proposed a large data center project on a portion of the former Western Digital campus in San Jose, California, which would require 99.7 megawatts of power. The city of San Jose is reportedly enthusiastic about the prospect, viewing data centers as a significant source of annual revenue and consistent with existing industrial zoning. The proposal is currently in its early stages.
A new data center project is being proposed by Menlo Equities for a section of the former Western Digital tech campus in South San Jose, California. The planned 444,400 square foot facility would require 99.7 megawatts of power and include an on-site substation. This development highlights the continued growth in advanced computing hubs, driven by the artificial intelligence era, with many developers now proposing data centers across North San Jose, the Alviso district, and South San Jose.
Land-use expert Erik Schoennauer, consulting for Menlo Equities, noted that the data center proposal aligns with the site's long-standing industrial zoning, despite its proximity to residences and commercial areas. In contrast to other Bay Area communities like Oakley and Pittsburg, where data center proposals have faced skepticism over environmental impacts and water consumption, San Jose's political leaders, including Mayor Matt Mahan and the City Council, appear to favor new data centers.
A March 2026 report to the Mayor and City Council, prepared by Deputy City Manager Manuel Pineda, underscored the financial benefits for San Jose. The report projected that a 50-99 megawatt data center, once fully operational, could generate $3 million to $6 million in unrestricted annual revenue for city services. The report also emphasized that data centers demand limited public services, do not increase traffic significantly, and avoid the school and public safety demands associated with residential developments, thereby helping San Jose capture economic activity.