PG&E Begins Energy Infrastructure Upgrades to Bring San Jose's Net Zero Community to Life
PG&E and Westbank have announced significant progress in developing Silicon Valley's innovative net-zero community in San Jose. The project will combine three data centers with up to 4,000 residential units, utilizing excess heat from the data centers through a district energy system to heat and cool surrounding buildings.
Key developments include:
- PG&E has begun infrastructure upgrades to deliver 200 megawatts of power to the data centers
- San Jose City Council unanimously approved the first two data centers, with the first expected online in late 2027
- The project includes rehabilitating the 100-year-old Bank of Italy building, adding 114 residential homes
- Eastdil Secured will lead the search for data center partners
The initiative aims to address growing demands for AI-driven data centers and housing while advancing San Jose's sustainability goals, promising reduced energy bills and building decarbonization through the district energy system.
PG&E e Westbank hanno annunciato progressi significativi nello sviluppo della comunit脿 a emissioni zero innovativa della Silicon Valley a San Jose. Il progetto combiner脿 tre centri dati con fino a 4.000 unit脿 abitative, sfruttando il calore in eccesso dai centri dati attraverso un sistema energetico distrettuale per riscaldare e raffreddare gli edifici circostanti.
Sviluppi chiave includono:
- PG&E ha iniziato gli aggiornamenti delle infrastrutture per fornire 200 megawatt di energia ai centri dati
- Il Consiglio Comunale di San Jose ha approvato all'unanimit脿 i primi due centri dati, con il primo previsto online entro la fine del 2027
- Il progetto prevede la riabilitazione dell'edificio della Bank of Italy, che ha 100 anni, aggiungendo 114 abitazioni residenziali
- Eastdil Secured guider脿 la ricerca di partner per i centri dati
L'iniziativa mira a rispondere alla crescente domanda di centri dati alimentati dall'IA e di alloggi, contribuendo al contempo agli obiettivi di sostenibilit脿 di San Jose, promettendo bollette energetiche ridotte e decarbonizzazione degli edifici attraverso il sistema energetico distrettuale.
PG&E y Westbank han anunciado avances significativos en el desarrollo de la comunidad de emisiones netas cero innovadora en Silicon Valley, en San Jos茅. El proyecto combinar谩 tres centros de datos con hasta 4,000 unidades residenciales, utilizando el calor excedente de los centros de datos a trav茅s de un sistema de energ铆a distrital para calentar y enfriar los edificios circundantes.
Los desarrollos clave incluyen:
- PG&E ha comenzado las actualizaciones de infraestructura para entregar 200 megavatios de energ铆a a los centros de datos
- El Concejo Municipal de San Jos茅 aprob贸 por unanimidad los primeros dos centros de datos, con el primero previsto en funcionamiento a finales de 2027
- El proyecto incluye la rehabilitaci贸n del edificio de 100 a帽os de antig眉edad de Bank of Italy, a帽adiendo 114 viviendas residenciales
- Eastdil Secured liderar谩 la b煤squeda de socios para los centros de datos
La iniciativa tiene como objetivo abordar la creciente demanda de centros de datos impulsados por IA y vivienda, al tiempo que avanza en los objetivos de sostenibilidad de San Jos茅, prometiendo facturas de energ铆a reducidas y descarbonizaci贸n de edificios a trav茅s del sistema de energ铆a distrital.
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PG&E et Westbank ont annonc茅 des progr猫s significatifs dans le d茅veloppement de la communaut茅 脿 z茅ro 茅mission innovante de la Silicon Valley 脿 San Jos茅. Le projet combinera trois centres de donn茅es avec jusqu'脿 4 000 unit茅s r茅sidentielles, utilisant la chaleur exc茅dentaire des centres de donn茅es via un syst猫me 茅nerg茅tique de district pour chauffer et refroidir les b芒timents environnants.
Les d茅veloppements cl茅s comprennent :
- PG&E a commenc茅 des mises 脿 niveau d'infrastructure pour fournir 200 m茅gawatts d'茅nergie aux centres de donn茅es
- Le Conseil municipal de San Jos茅 a approuv茅 脿 l'unanimit茅 les deux premiers centres de donn茅es, le premier devant 锚tre op茅rationnel fin 2027
- Le projet comprend la r茅habilitation du b芒timent de la Bank of Italy 芒g茅 de 100 ans, ajoutant 114 logements r茅sidentiels
- Eastdil Secured dirigera la recherche de partenaires pour les centres de donn茅es
L'initiative vise 脿 r茅pondre 脿 la demande croissante de centres de donn茅es aliment茅s par l'IA et de logements tout en faisant avancer les objectifs de durabilit茅 de San Jos茅, promettant des factures d'茅nergie r茅duites et la d茅carbonisation des b芒timents gr芒ce au syst猫me 茅nerg茅tique de district.
PG&E und Westbank haben bedeutende Fortschritte bei der Entwicklung der innovativen Netto-Null-Gemeinschaft im Silicon Valley in San Jose angek眉ndigt. Das Projekt wird drei Rechenzentren mit bis zu 4.000 Wohneinheiten kombinieren und die 眉bersch眉ssige W盲rme der Rechenzentren 眉ber ein Fernw盲rmesystem zur Beheizung und K眉hlung der umliegenden Geb盲ude nutzen.
Wichtige Entwicklungen umfassen:
- PG&E hat mit Infrastrukturverbesserungen begonnen, um 200 Megawatt Strom zu den Rechenzentren zu liefern
- Der Stadtrat von San Jose hat einstimmig die ersten beiden Rechenzentren genehmigt, wobei das erste Ende 2027 online gehen soll
- Das Projekt umfasst die Sanierung des 100 Jahre alten Bank of Italy-Geb盲udes, das 114 Wohneinheiten hinzuf眉gt
- Eastdil Secured wird die Suche nach Partnern f眉r die Rechenzentren leiten
Die Initiative zielt darauf ab, der wachsenden Nachfrage nach KI-gesteuerten Rechenzentren und Wohnraum gerecht zu werden und gleichzeitig die Nachhaltigkeitsziele von San Jose voranzutreiben, wobei versprochen wird, die Energiekosten zu senken und die Dekarbonisierung von Geb盲uden durch das Fernw盲rmesystem zu erm枚glichen.
- Infrastructure upgrade to deliver 200MW of power capacity
- Unanimous city council approval for first two data centers
- Project combines revenue-generating data centers with residential development
- Cost reduction potential through energy recycling system
- Strategic positioning in high-demand AI data center market
- Extended timeline with first data center operational only by late 2027
- Significant capital investment required for infrastructure upgrades
- Complex integration of multiple systems may increase operational risks
Insights
PG&E's 200-megawatt infrastructure upgrade for San Jose's data centers represents strategic positioning in the high-growth AI computing market while advancing California's sustainability goals. This isn't merely a power delivery project鈥攊t's a sophisticated integration of energy systems that creates multiple revenue opportunities.
The district energy approach, where waste heat from data centers is repurposed for surrounding buildings, demonstrates rare technical innovation from a traditional utility. By capturing and reusing thermal energy that would otherwise be wasted, PG&E is enabling significantly improved energy efficiency across the development while positioning itself as an essential partner in next-generation urban infrastructure.
With data center demand described as "off the charts" by San Jose's mayor, PG&E is securing substantial long-term power delivery contracts in one of America's most expensive electricity markets. The substation rebuilding and transmission enhancements deliver additional value by enabling broader electrification initiatives beyond just the data centers.
This project addresses several strategic challenges simultaneously: meeting the enormous power demands of AI infrastructure, advancing decarbonization goals, supporting housing development, and modernizing aging grid infrastructure. The unanimous city council approval significantly reduces regulatory risk, while the phased approach (first center online in 2027) allows for managed capital deployment.
Westbank and PG&E's San Jose project represents a breakthrough in integrating critical digital infrastructure with urban housing development. By pairing three data centers with up to 4,000 residential units, this initiative creates a synergistic solution to Silicon Valley's twin crises of housing affordability and AI computing capacity.
The heating and cooling approach alone delivers three substantial economic advantages: reduced energy costs for residents and businesses, improved power utilization efficiency for the data centers, and reduced carbon emissions. These efficiency gains create a sustainable economic advantage beyond typical developments.
The rehabilitation of the century-old Bank of Italy building, which will include 114 residential units and all-electric systems, demonstrates how historical preservation can be incorporated into forward-looking infrastructure. This balanced approach tends to receive stronger community support and faster approvals than purely commercial developments.
Notably, the global call for data center partners through Eastdil Secured suggests the developers are seeking specialized operators rather than building generic facilities. This approach typically attracts higher-quality tenants and stronger long-term economics. For PG&E, serving as the enabling infrastructure partner positions them upstream in the value chain of Silicon Valley's continuing digital transformation while advancing climate objectives鈥攁 powerful combination for future growth.
Westbank Issues Global Call for Data Centers
Eastdil Secured, a global real estate investment bank, will lead the process of identifying partners who support using data centers to enhance communities.
Westbank's project will pair three data centers with up to 4,000 residential units to create a sustainable downtown
"The Silicon Valley Initiative is about the evolution of energy, housing and AI infrastructure 鈥� it will create a more inspiring and sustainable community that demonstrates leadership globally. In PG&E and the
On April 8, the
"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
PG&E has started infrastructure upgrades for delivering approximately 200 megawatts of power to the three data centers. The improvements include rebuilding a key substation and making several transmission interconnection and capacity enhancements that will position
"PG&E's infrastructure projects will have a far-reaching impact beyond the net zero community. They will support
The Net Zero community groundbreaking is anticipated for later this Spring, beginning with rehabilitating the ~100-year-old Bank of
"This initiative represents a bold new approach to energy, housing and economic transformation. As a key infrastructure partner for
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.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and
About Westbank
Westbank is a practice dedicated to the creation of inspiring environments, with a body of work that includes residential, hotels, retail, workspace, district energy, affordable housing, exhibitions and public art. The net zero community in
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SOURCE Pacific Gas and Electric Company
FAQ
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