SAN JOSE — New energy upgrades in San Jose could provide enough power for an additional 1 million homes in the Bay Area’s largest city as data centers and other energy-intensive technologies continue to push the need for capacity.
LS Power broke ground Wednesday on what the company calls its Skyline terminal at 200 Ryland St., an electricity complex that will connect to PG&E’s adjacent Station B at 260 Coleman Ave.
Development site of an LS Power electricity hub at 200 Ryland Street in downtown San Jose in the foreground, with PG&E Station B in the background, as seen on May 20, 2026. (George Avalos/Bay Area News Group)
PG&E Station B at 260 Coleman Ave. in downtown San Jose, a power hub that is next to the under-construction LS Power terminal that will help to greatly expand electricity capacity in the San Jose area. (Shae Hammond/Bay Area News Group)
Business executives and local and state government officials break ground on the LS Power Skyline electricity terminal at 200 Ryland Street in downtown San Jose, one of two company projects that will create enough electricity capacity for 1 million homes in San Jose and nearby. (George Avalos/Bay Area News Group)
In 2023, an affiliate of LS Power paid $56.5 million for the 9.8-acre site.
Once complete and connected to the PG&E grid, the LS Power hub, coupled with other efforts, will help deliver an additional 1,000 megawatts to San Jose and the surrounding area.
“San Jose needs to be the capital of power as much as it is the capital of Silicon Valley,” Leah Toeniskoetter, chief executive officer of the San Jose Chamber of Commerce, said in an interview with this news organization.
LS Power said it has pursued multiple projects in San Jose because of positive economic prospects largely propelled by the region’s tech industry.
“The Bay Area is one of the most economically dynamic regions in the world, home to more than 7 million people,” said Paul Segal, LS Power’s chief executive officer. “It’s a hub for technology, advanced manufacturing and biomedical research. It’s a region where demand for reliable and affordable electricity is accelerating.”
The new terminal is slated to be energized in 2028 once the project is completed, according to officials with LS Power, an electricity and infrastructure company that has launched multiple projects to bolster power capacity in the South Bay.
“The project represents a transformative investment in San Jose’s future,” said San Jose City Councilmember Michael Mulcahy, whose district includes the site on Ryland Street. “As our city continues to grow, so does the demand on our electric grid.”
LS Power is undertaking two major projects to bring new power connections into San Jose.
One involves the creation of a 500-megawatt transmission line and other facilities between and next to the Metcalf substation in South San Jose and PG&E San Jose Station B.
The other involves the development of a 500-megawatt electricity transmission link and other facilities between and near PG&E’s existing Newark Substation in Fremont and the Northern Receiving Station in Santa Clara.
Executives with LS Power claim upgrades won’t just be for the tech industry.
“Every electricity customer in the region will benefit from these upgrades, whether that is is a family in a new home, a small business, electric vehicle charging networks, buildings that are undergoing electrification, or just a major-load customer like a manufacturing facility or a research facility,” Segal said.
The LS Power efforts in San Jose and nearby suggest the region remains in an advantageous position moving forward, according to Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
“This is another sign that San Jose and Silicon Valley are in growth and expansion mode, not in contraction,” Staedler said.