Key Takeaways
- • Prologis has filed plans with San Jose city planners for a 516,000-square-foot, three-story data center on a 15-acre site at 5977 Silver Creek Valley Road in South San Jose, offering 99 megawatts of power capacity.
- • The facility includes an on-site substation, dedicated backup generation capability, and approximately 30,000 square feet of office space, with construction expected to take around two years.
- • Prologis selected the site for its position within an established industrial corridor and proximity to a recently upgraded PG&E substation 2.5 miles away, which now operates at 80 megawatts of capacity (double its previous rating) with built-in headroom for future expansion.
- • The developer is absorbing transmission interconnection costs upfront and funding a second, independently routed transmission line to the facility, reducing reliance on backup generation and improving system reliability rather than passing infrastructure expenses to future tenants.
- • The project capitalizes on PG&E's strategic grid expansion plans in the region, which are designed to serve additional customers and enhance broader grid reliability in the surrounding area.
Summary
Prologis has submitted plans to San Jose city planners for a major data center development in South San Jose, marking a significant expansion of the company's infrastructure footprint in the Bay Area. The proposed facility will span 516,000 square feet across three stories on a 15-acre parcel at 5977 Silver Creek Valley Road and will provide 99 megawatts of power capacity. The project includes an on-site substation, a dedicated backup generation facility, and roughly 30,000 square feet of office space, with an anticipated construction timeline of approximately two years.
The site selection reflects a strategic approach to data center logistics. Prologis identified the location's position within an established industrial corridor and its proximity to existing power infrastructure as critical factors. Notably, a PG&E substation located 2.5 miles away at 6402 Santa Teresa Boulevard was recently upgraded to 80 megawatts of capacity, doubling its previous output. PG&E has also configured the substation with pre-built headroom to accommodate expansion beyond current capacity, positioning the facility within a broader utility growth strategy designed to serve additional customers and improve regional grid reliability. This type of strategic utility infrastructure proximity represents a meaningful logistical advantage in permitting and operating a facility at this power scale.
A distinctive aspect of Prologis's approach involves its commitment to fund transmission interconnection work directly rather than allocating costs to future tenants or seeking utility cost-sharing arrangements. The company is additionally funding a second, independently routed transmission line to the site, a decision intended to enhance system reliability and reduce operational dependence on backup generation. This upfront infrastructure investment signals confidence in the project's viability and reflects a broader industry trend toward ensuring robust, redundant power delivery for mission-critical data center operations.
The filing positions Prologis to capitalize on accelerating data center demand in Northern California, while the developer's willingness to absorb significant transmission infrastructure costs underscores the competitive advantage and long-term tenant value proposition it sees in the South San Jose location.
The site selection reflects a strategic approach to data center logistics. Prologis identified the location's position within an established industrial corridor and its proximity to existing power infrastructure as critical factors. Notably, a PG&E substation located 2.5 miles away at 6402 Santa Teresa Boulevard was recently upgraded to 80 megawatts of capacity, doubling its previous output. PG&E has also configured the substation with pre-built headroom to accommodate expansion beyond current capacity, positioning the facility within a broader utility growth strategy designed to serve additional customers and improve regional grid reliability. This type of strategic utility infrastructure proximity represents a meaningful logistical advantage in permitting and operating a facility at this power scale.
A distinctive aspect of Prologis's approach involves its commitment to fund transmission interconnection work directly rather than allocating costs to future tenants or seeking utility cost-sharing arrangements. The company is additionally funding a second, independently routed transmission line to the site, a decision intended to enhance system reliability and reduce operational dependence on backup generation. This upfront infrastructure investment signals confidence in the project's viability and reflects a broader industry trend toward ensuring robust, redundant power delivery for mission-critical data center operations.
The filing positions Prologis to capitalize on accelerating data center demand in Northern California, while the developer's willingness to absorb significant transmission infrastructure costs underscores the competitive advantage and long-term tenant value proposition it sees in the South San Jose location.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.