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 comunità a emissioni zero innovativa della Silicon Valley a San Jose. Il progetto combinerà tre centri dati con fino a 4.000 unità 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'unanimità 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 guiderà 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 sostenibilità 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 José. El proyecto combinará tres centros de datos con hasta 4,000 unidades residenciales, utilizando el calor excedente de los centros de datos a través de un sistema de energía 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 energía a los centros de datos
- El Concejo Municipal de San José aprobó por unanimidad los primeros dos centros de datos, con el primero previsto en funcionamiento a finales de 2027
- El proyecto incluye la rehabilitación del edificio de 100 años de antigüedad de Bank of Italy, añadiendo 114 viviendas residenciales
- Eastdil Secured liderará la búsqueda 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 José, prometiendo facturas de energía reducidas y descarbonización de edificios a través del sistema de energía distrital.
PG&E와 Westbank는 샌호세에서 실리콘밸리의 혁신적인 넷 제로 커뮤니티 개발에 있어 중요한 진전을 발표했습니다. 이 프로젝트는 세 개의 데이터 센터와 최대 4,000개의 주거 단위를 결합하여 데이터 센터에서 발생하는 잉여 열을 지역 에너지 시스템을 통해 주변 건물의 난방 및 냉방에 활용할 것입니다.
주요 발전 사항은 다음과 같습니다:
- PG&E는 데이터 센터에 200메가와트의 전력을 공급하기 위한 인프라 업그레이드를 시작했습니다
- 샌호세 시의회는 첫 번째 두 개의 데이터 센터를 만장일치로 승인했으며, 첫 번째 센터는 2027년 말에 온라인으로 예상됩니다
- 이 프로젝트에는 100년 된 이탈리아 은행 건물의 재활이 포함되며, 114개의 주거 단지를 추가합니다
- Eastdil Secured가 데이터 센터 파트너를 찾는 작업을 이끌 것입니다
이 이니셔티브는 AI 기반 데이터 센터와 주택에 대한 증가하는 수요를 해결하는 동시에 샌호세의 지속 가능성 목표를 추진하며, 지역 에너지 시스템을 통해 에너지 요금을 줄이고 건물의 탈탄소화를 약속합니다.
PG&E et Westbank ont annoncé des progrès significatifs dans le développement de la communauté à zéro émission innovante de la Silicon Valley à San José. Le projet combinera trois centres de données avec jusqu'à 4 000 unités résidentielles, utilisant la chaleur excédentaire des centres de données via un système énergétique de district pour chauffer et refroidir les bâtiments environnants.
Les développements clés comprennent :
- PG&E a commencé des mises à niveau d'infrastructure pour fournir 200 mégawatts d'énergie aux centres de données
- Le Conseil municipal de San José a approuvé à l'unanimité les deux premiers centres de données, le premier devant être opérationnel fin 2027
- Le projet comprend la réhabilitation du bâtiment de la Bank of Italy âgé de 100 ans, ajoutant 114 logements résidentiels
- Eastdil Secured dirigera la recherche de partenaires pour les centres de données
L'initiative vise à répondre à la demande croissante de centres de données alimentés par l'IA et de logements tout en faisant avancer les objectifs de durabilité de San José, promettant des factures d'énergie réduites et la décarbonisation des bâtiments grâce au système énergétique de district.
PG&E und Westbank haben bedeutende Fortschritte bei der Entwicklung der innovativen Netto-Null-Gemeinschaft im Silicon Valley in San Jose angekündigt. Das Projekt wird drei Rechenzentren mit bis zu 4.000 Wohneinheiten kombinieren und die überschüssige Wärme der Rechenzentren über ein Fernwärmesystem zur Beheizung und Kühlung der umliegenden Gebäude 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-Gebäudes, das 114 Wohneinheiten hinzufügt
- Eastdil Secured wird die Suche nach Partnern für 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 Gebäuden durch das Fernwärmesystem zu ermöglichen.
- 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—it'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—a 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 – 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
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