Pacific Gas and Electric Company (PG&E) has announced the initiation of infrastructure upgrades, while Westbank, a real estate developer, has launched a global call for data center partners to join the development of Silicon Valley’s innovative Net Zero Community – defined as where the total greenhouse gas (GHG) emissions produced are balanced by the total GHG emissions removed from the atmosphere, resulting in a net zero balance. This is achieved through a combination of reducing emissions through energy efficiency and renewable energy sources, and then offsetting any remaining emissions by carbon removal measures.

Westbank’s project will pair three data centers with up to 4,000 residential units to create a sustainable downtown San Jose. Excess heat from the data centers will be harnessed and repurposed through a district energy system to heat and cool surrounding buildings. The plan addresses the growing demand for artificial intelligence (AI)-driven data centers and housing.

PG&E has started infrastructure upgrades to deliver approximately 200 MW of power to the three data centers. The improvements include rebuilding a substation, and making several transmission interconnection and capacity enhancements in San Jose.

The San Jose City Council has unanimously approved the advancement of the first two data centers, with the first data center expected to be operational in late 2027. PG&E’s infrastructure projects will also support San Jose’s new rail service, upcoming developments, and the electrification of homes and vehicles.