Two Data Centers Proposed in San Jose to Support AI Technology Growth
Plans for two new data centers have emerged in north San Jose, set to replace earlier proposals for a mixed-use village and an advanced tech manufacturing facility. The developments are planned for the site around 350 West Trimble Road, located between Orchard Parkway and the Guadalupe River.
The land, owned by an affiliate of LBA Realty, a well-known Bay Area real estate firm, has seen several project proposals in recent years. In 2019, LBA Realty suggested a village called North Town that would feature office spaces, hotels, retail shops, and restaurants.
At one point, LBA Realty controlled approximately 68.1 acres on two parcels at this location. In 2021, about 30.6 acres were sold to Microsoft for $78.7 million, with Microsoft proposing to build two data centers on the property. In 2022, LBA Realty introduced new plans for an advanced manufacturing tech complex of around 208,000 square feet, though construction has not started yet.
Details of the New Data Center Projects
- The first data center and office space would cover about 206,300 square feet on an 18.1-acre site. This facility would include its own private electrical substation.
- The second data center and office would be approximately 208,000 square feet, located on a 10.3-acre parcel.
Both projects will likely trigger upgrades to the nearby Pacific Gas & Electric (PG&E) power station, with plans to expand the existing switching station to accommodate increased power demands.
Why Data Centers Are a Key Focus
Data centers have become attractive investments for real estate developers due to their critical role in supporting the artificial intelligence (AI) industry. AI and machine-learning applications require massive computing resources, making data centers essential for processing these workloads efficiently.
For professionals in real estate and construction, these projects highlight a growing trend of repurposing land for infrastructure that supports the tech sector's evolving needs. Understanding the requirements for power, space, and connectivity is crucial when planning or managing such developments.
More information on AI technology and infrastructure trends can be found at Complete AI Training.
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