SAN JOSE — Google agreed to make an up-front payment of $150 million to cover the cost of a PG&E electricity connection for the tech company’s complex in North San Jose.
PG&E is seeking approval from the state Public Utilities Commission to develop equipment and facilities that would connect the complex to the grid. The commission is scheduled to rule on the proposal this year.
Part of Google’s Meadow Point campus in the Alviso district, the building that requires the connection is at 5079 Disk Drive, documents on file with the state PUC show.
Construction work has already started at the site. Mountain View-based Google estimates the building would demand 250 megawatts of electricity.
“For context, 250 megawatts is larger than the average demand from all of Marin County in 2024,” state PUC documents show.
Oakland-based PG&E estimated that construction could begin about six months after the regulatory agency’s approval and would take about two years to complete.
As part of the proposal for the “transmission-level retail electric service” to interconnect the Disk Drive site to the power grid, Google has agreed to pay an advance of $600,000 per megawatt, which works out to $150 million.
“PG&E provides a public estimated cost range of $64 million to $137 million,” state regulatory documents show. “This public cost estimate reflects only the applicant build portion of the project and does not include the costs associated with work performed directly by PG&E.”
Over time, Google would be reimbursed for its up-front payment, the regulatory filing shows. The reimbursement could affect monthly bills.
“As a customer is refunded, the related capital costs are added to PG&E’s accounts and ultimately recovered from ratepayers,” according to a document on file with the state PUC.
A state PUC staff report suggests the up-front payments required from Google should protect ratepayers over the lifespan of the equipment and facilities PG&E would install to connect the tech company’s facilities to the grid.
“We find the $600,000 per megawatt figure to be an appropriate amount to protect ratepayers from the general costs of transmission network upgrades” for the Google project, PUC documents stated.
Google aims to develop as many as three new buildings on Disk Drive in the vicinity of the intersection of North First Street and Nortech Parkway, documents on file at San Jose City Hall show.
The buildings are “research and development facilities,” city planning documents state. If they are all built, they could total 482,800 square feet, according to a public filing.
Google tech building and adjacent construction items are visible at 5079 Disk Drive in the Alviso district of North San Jose, as seen on Oct. 29, 2026. (George Avalos/Bay Area News Group)
Construction equipment is visible next to a Google tech building on Disk Drive in the Alviso district of North San Jose, seen on Oct. 29, 2026. (George Avalos/Bay Area News Group)