Three-story data center proposed for San Jose industrial site

Three-story data center proposed for San Jose industrial site

News ClipThe Mercury News·San Jose, Santa Clara County, CA·8/28/2026

Prologis has filed a special use permit with the City of San Jose to build a three-story, 514,000-square-foot data center with 99 megawatts of power capacity at a former industrial site in North San Jose. PG&E plans to expand its substation capacity in the vicinity to support growing data center demand, with Prologis funding interconnection costs and aiming for 100% carbon-free electricity.

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Gov: City of San Jose

Real estate firm Prologis has submitted a special use permit application to the City of San Jose for the construction of a three-story, 514,000-square-foot data center. The proposed facility, slated for a former industrial site at 326 Charcot Ave. in North San Jose, is designed to house tech companies in an area already home to giants like Google, Cisco, and Apple.

The project specifies a total power capacity of 99 megawatts, featuring an onsite substation and backup generator. Prologis stated that PG&E is planning to expand its substation infrastructure nearby to accommodate the data center's power needs. Prologis will bear all costs associated with connecting the data center to the electricity grid, including any necessary PG&E substation upgrades, and intends to fund a second, independently routed transmission line for enhanced reliability. The company also aims for 100% carbon-free electricity by enrolling in San Jose's Total Clean Energy program.

This proposal comes amidst increasing opposition to data center developments in some Bay Area cities and across the nation, driven by concerns over environmental impacts, electricity consumption, and water usage. Despite these concerns, the tech industry views data centers as crucial for advancing technologies like artificial intelligence. PG&E reported a significant surge in its data center pipeline, totaling 12.71 gigawatts by the end of June, prompting the utility to undertake extensive substation expansion efforts in San Jose.