
Tech-ready data center may sprout inside vast San Jose industrial hub
Plans have been filed for a new data center at 5853 Rue Ferrari in south San Jose, California, which could house a major tech hub requiring 49 megawatts of power. The project, led by Prologis, includes an on-site electricity substation and cooling chillers. Nearby, PG&E is doubling the capacity of a substation at Equinix's request, and LS Power is developing a new energy hub in downtown San Jose to meet rising demand.
Plans are underway for a significant data center development at 5853 Rue Ferrari in south San Jose, California, according to filings submitted to city planners. The project, overseen by Prologis, involves tenant improvements to a 302,800-square-foot industrial building to create a computer hub featuring server racks, research and development spaces, laboratories, and offices. The proposed facility is expected to require 49 megawatts of power, necessitating the creation of an on-site electricity substation and the addition of cooling chillers.
Simultaneously, regional utility PG&E is increasing the capacity of its nearby substation at 6402 Santa Teresa Blvd from 40 to 80 megawatts at the request of data center developer Equinix. PG&E spokesperson Stephanie Magallon confirmed the substation has been configured for further expansion to support San Jose's growing energy needs. Additionally, LS Power is constructing a major new energy hub in downtown San Jose, aiming to accommodate the surging electricity demand from artificial intelligence, data centers, and other power-intensive industries. Commercial real estate firm CBRE is currently marketing the Rue Ferrari building to potential tenants, with some experts speculating that companies like Nvidia may be interested in the site.