What's Happening?
San Jose is poised to transform a large area of undeveloped land near its regional wastewater plant into a data center and advanced manufacturing campus. The city plans to negotiate with Prologis, a leading developer of logistics real estate, to develop 159
acres into the Sustainable Technology, Engineering, and Manufacturing (STEM) Park. This project includes four data centers and advanced manufacturing facilities, potentially generating significant revenue for the city. The proposal by Prologis was selected over others due to its alignment with the city's energy capacity and economic goals. The development is expected to leverage new energy infrastructure, including high-voltage transmission lines, to support its operations.
Why It's Important?
The proposed development is significant for San Jose's economy, potentially generating $30 million annually in general fund revenue. This project aligns with the city's vision to become a hub for artificial intelligence and advanced manufacturing, creating high-paying jobs and fostering innovation. The development will utilize San Jose's excess energy capacity, potentially lowering energy costs for residents by spreading fixed costs over more users. This initiative could position San Jose as a leader in the AI economy, attracting further investment and development in the region.
What's Next?
The project requires approval from the San Jose City Council. If approved, construction is expected to begin between 2028 and 2029, with initial occupancy in 2030. Prologis will need to work closely with PG&E to ensure the necessary energy infrastructure is in place. The city has already secured commitments from PG&E for grid improvements, which will be crucial for the project's success. If negotiations with Prologis fail, the city has identified Catellus-Deca as a backup developer.
