San Francisco Bay Area: North San Jose Slated to Receive New Data Centers

May 12, 2023 | Posted by Abdul-Rahman Oladimeji

This week, the San Jose City Council unanimously authorized plans for a sophisticated manufacturing complex and data centers in North San Jose. Denver-based STACK Infrastructure plans to destroy two industrial buildings on a nearly 10-acre parcel, including a former Olympus service center, and build over 650,000 square feet of new structures. On a plot at the southeast corner of Trade Zone Boulevard and Ringwood Avenue, a new four-story manufacturing plant will be roughly 136,000 square feet in size, and two four-story data centers will be roughly 522,000 square feet in total. The project also includes a 100 mega-volt ampere electrical substation and a 300-space 150,000-square-foot parking structure. Next door at 2001 Fortune Drive, the business finished another 400,000-square-foot data center.

At the meeting, District 4 Councilmember David Cohen said this would expand and create a major data center and job center on the corner.  Cohen represents the project site. He and Mayor Matt Mahan endorsed the proposal for its potential to create jobs. The company expects 700 union construction positions and almost 200 permanent employees at the data centers and manufacturing sites. 39 backup generators will supplement the substation's power. Miles Kersten, the company's head of development, claimed the substation would employ 100% PG&E green power but diesel backup generators. Diesel is preferred due to the "critical nature" of data center operations and the necessity for consistent backup power. Still, Kersten said the company is examining other possibilities for future projects. The project will involve removing 156 trees. The developer will only replace 47 trees with 24-inch box trees and pay $326,275 in "in-lieu" payments to the city to transplant other plants. Some planning commissioners have raised concerns over the number of trees being cut and not replaced and the city's inefficient tree replacement program.