(TNS) \u2014 A data center could rise on part of a long-time San Jose tech campus, according to a proposal that offers fresh evidence that the boom in these advanced computing hubs is still in its early stages as the artificial intelligence era unfolds.<\/p>\n
The digital complex would be built along\u00a0Charlotte Drive\u00a0between\u00a0Lexington Avenue\u00a0and\u00a0Raleigh Road\u00a0on a section of the\u00a0Western Digital\u00a0tech campus in South San Jose.<\/p>\n
A\u00a0growing number of property owners<\/a>\u00a0and real estate\u00a0developers have begun to float proposals<\/a>\u00a0for data centers in North San Jose, the\u00a0Alviso district<\/a>, and in South San Jose as they seek to slake the\u00a0tech industry\u2019s thirst<\/a>\u00a0for the cutting-edge hubs.<\/p>\n The new proposal involving the\u00a0Western Digital\u00a0campus is being floated by\u00a0Menlo Equities, an experienced real estate firm that would develop the data center.<\/p>\n The data center would total approximately 444,400 square feet. The project would include an on-site substation. The computing hub would require 99.7 megawatts of total power and would include 72 megawatts of critical backup power. The data center would be located on a site that\u2019s next to or near residences, shops and restaurants.<\/p>\n Despite that proximity, a data center would be consistent with the long-time zoning for the tech campus, noted\u00a0Erik Schoennauer, a San Jose-based land-use expert who is consulting with the developer on the project.<\/p>\n \u201cThis site has been designated for industrial use for many decades,\u201d Schoennauer said. \u201cThe proposed project is consistent with the city\u2019s industrial zoning districts.\u201d<\/p>\n Skepticism has jolted proposals for data hubs in some\u00a0Bay Area\u00a0communities such as\u00a0Oakley<\/a>,\u00a0Pittsburg<\/a>,\u00a0Brentwood<\/a>,\u00a0Gilroy<\/a>,\u00a0Hayward<\/a>\u00a0and elsewhere around the country.<\/p>\n Opponents in some communities and elsewhere around the country have raised concerns that data centers might produce undesirable impacts on the environment, consume too much water and pose health hazards.<\/p>\n In sharp contrast, San Jose political leaders appear to be intrigued by the prospect of new data centers.<\/p>\n A\u00a0March 2026\u00a0report prepared for San Jose Mayor\u00a0Matt Mahan\u00a0and the other members of the\u00a0City Council\u00a0offered reasons why the Bay Area city appears to hunger for data centers.<\/p>\n One key bottom line: Data centers can produce streams of cash for San Jose\u2019s city coffers.<\/p>\n \u201cA 50- to 99-megawatt data center, once fully ramped up, could generate between $3 million and $6 million in unrestricted annual revenue for city services,\u201d Deputy City Manager\u00a0Manuel Pineda\u00a0wrote in the report.<\/p>\n Plus, data centers can process their strings of proverbial 1s and 0s in an unassuming and nondescript fashion.<\/p>\n The city staffer noted that data centers require limited public services once they are operational. The report added that data centers do not add traffic and do not generate school and public safety demand at the scale of residential projects.<\/p>\n \u201cThe city benefits from capturing economic activity that would otherwise be located in other states or regions,\u201d the city staff report stated. \u201cRetaining these projects locally allows San Jose to share in the financial upside of the digital economy.\u201d<\/p>\n
Menlo Equities\u00a0has also proposed the development of some open space at the corner of Charlotte and Lexington that would be accessible to the public, the development plans show.<\/p>\n