Pacific Gas and Electric Company (PG&E) has announced initiation of infrastructure upgrades and Westbank, a real estate developer, has launched a global call for data center partners to join the development of Silicon Valley's innovative net-zero community.
Westbank's project will pair three data centers with up to 4,000 residential units to create a sustainable downtown San Jose. Excess heat from the data centers will be harnessed and repurposed through a district energy system to heat and cool surrounding buildings. The plan addresses the growing demand for artificial intelligence (AI)-driven data centers and housing.
PG&E has started infrastructure upgrades for delivering approximately 200 MW of power to the three data centers. The improvements include rebuilding a substation and making several transmission interconnection and capacity enhancements in San Jose.
The San Jose City Council has unanimously approved the advancement of the first two data centers, with the first data center expected to be operational in late 2027.
"Demand for new data centers is off the charts and will enable a more efficient and convenient future for everyone, but convenience doesn't matter if we destroy the planet in the process," said San Jose Mayor, Matt Mahan. "This innovative partnership will allow us to harness data center demand to build much needed workforce housing and ensure it is powered by excess heat from the data centers."
"PG&E's infrastructure projects will support San Jose's new rail service, incoming developments and the electrification of homes and vehicles," said Michael Medeiros, vice president of South Bay Delivery for PG&E. "These upgrades will help ensure San Jose continues to lead and stay ahead in sustainability."
The Net Zero community inauguration is expected by the end of Spring 2025, beginning with rehabilitating the ~100-year-old Bank of Italy. The building will include all-electric mechanical, electrical and plumbing systems, as well as new energy-efficient windows. The building will also include 114 residential homes and will integrate into the district energy system.
Additional benefits of the Net Zero Community include:
- Reduced energy bills for businesses and residents by utilizing recycled heat from data centers.
- More efficient use of electricity powering the data centers.
- Decarbonization of buildings connected to the district energy system.
