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Prologis Secures Approval for 400MW Data Center & Manufacturing Campus in San Jose

Reported by Constructionowners
Nov 24, 2025· 3 min read
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Key Takeaways
  • • Prologis secured unanimous City Council approval as the preferred developer for a 159-acre San Jose site to build a 396MW data center campus paired with a 100MW manufacturing complex, representing one of the largest data center projects in the city's history.
  • • The project comprises 1.684 million square feet across four two-story data center buildings (99MW capacity each) plus 785,000 sq ft of advanced manufacturing space, with construction targeting 2028 completion.
  • • PG&E committed to provide 250MW of initial power capacity within 30–36 months via dual feed from the Los Esteros 230kV substation, with confirmed expansion potential to support future growth and operational scaling.
  • • The 159-acre site, city-owned and located near the San José-Santa Clara Regional Wastewater Facility, was strategically purchased circa 1998 to prevent incompatible land uses and is positioned as a critical tech infrastructure hub in Silicon Valley's energy ecosystem.
  • • San Jose projects a $30 million economic windfall from the "STEM Park" development, signaling significant municipal revenue and workforce development benefits from this industrial real estate transformation.
Summary
San Jose's City Council has approved Prologis as the preferred developer for one of Northern California's most significant data center infrastructure projects. The 159-acre parcel, owned by the city and located adjacent to the San José-Santa Clara Regional Wastewater Facility, will be transformed into a hybrid technology campus combining cloud computing infrastructure with advanced manufacturing capacity. The unanimous selection followed a formal Request for Qualification (RFQ) process, with city staff recommending approval to ensure the site supports high-tech infrastructure rather than residential or retail development.

Prologis' development plan calls for a 1.684 million square foot campus anchored by four two-story data center buildings, each capable of delivering 99 megawatts of compute capacity for a combined 396MW facility. The complex will be complemented by 785,000 square feet of manufacturing space designed to support high-tech production, including potential semiconductor or advanced electronics manufacturing at capacities up to 25MW per facility. Five on-site substations will distribute power across the campus to ensure operational resilience and redundancy. Construction is targeted to commence in 2028, positioning the project as a multi-year infrastructure investment in the region.

Power infrastructure represents a cornerstone competitive advantage for the development. PG&E has committed to providing an initial 250 megawatts of capacity within 30 to 36 months from the formal request, delivered via dual feed from the Los Esteros 230kV substation. The utility has confirmed that this capacity can be expanded beyond the initial commitment, creating a pathway for future growth and positioning the site as one of Silicon Valley's most robust power-fed data center hubs. This dual-feed configuration provides operational redundancy critical for enterprise-grade cloud and manufacturing operations.

The site's strategic positioning reflects decades of municipal planning. The wastewater facility originally acquired the surrounding acreage around 1998 specifically to prevent incompatible land uses from locating adjacent to its operational area, effectively preserving the land for complementary industrial infrastructure. The city projects approximately $30 million in economic benefits from the "STEM Park" project, reflecting both direct municipal revenue and long-term workforce development in advanced technology sectors. For institutional investors tracking data center supply and power-constrained infrastructure development in major tech metros, this approval represents a material addition to California's available high-power-density capacity.

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Constructionowners Prologis Secures Approval for 400MW Data Center & Manufacturing Campus in San Jose