San Jose officials have chosen industrial real estate leader Prologis to develop one of the largest data center projects in the city’s history — a 396MW campus paired with a 100MW manufacturing complex. The San Jose City Council approved the selection following a unanimous Request for Qualification (RFQ) vote, designating Prologis as the preferred builder for the 159-acre city-owned site near the San José-Santa Clara Regional Wastewater Facility (RWF).
City staff had recommended approval ahead of the decision, confirming the site would be used to support high-tech infrastructure rather than residential or commercial retail developments.
Prologis’ proposal calls for a 1.684 million sq ft (156,450 sqm) tech campus consisting of:
🔹 Four two-story data center buildings
🔹 Total compute capacity of 396MW
🔹 Five on-site substations to support continuous power
🔹 785,000 sq ft of manufacturing space supporting high-tech production
🔹 Up to 99MW per data center building
Each of the manufacturing facilities could support up to 25MW, positioning the complex to support not only cloud computing but also semiconductor or advanced electronics manufacturing.
Although the site sits next to the wastewater facility, officials emphasized that the surrounding acreage was intentionally purchased to prevent incompatible uses. RWF purchased the land “around 1998 to prevent incompatible uses from developing adjacent to the plant’s operational area,” according to city documents.
Power infrastructure will be a major advantage. Regional utility PG&E has committed to provide an initial 250MW within 30 to 36 months of request via a dual feed from the Los Esteros 230kV substation. The utility confirmed this capacity can be expanded, paving the way for potential future growth.
The site’s location is surrounded by major utility and environmental assets, including:
This strategic placement allows for heat mitigation, power routing, and close access to advanced reclaimed water infrastructure — a growing need for cooling tech campuses.
Two competing bidders also submitted plans. If Prologis were not selected, the land could have gone to:
Proposed:
Proposed:
The council favored Prologis due to its direct data center commitment and established power procurement pipeline.
Traditionally known for industrial logistics buildings and e-commerce infrastructure, Prologis has shifted rapidly into the data center market. The company reports:
Active and planned markets include Illinois, Virginia, Georgia, Texas, Paris (France), and Ohio, where the company recently bought land for another potential hyperscale site.
The decision aligns with Silicon Valley’s shift toward high-density computing infrastructure as AI, robotics, semiconductor manufacturing, and cloud hyperscalers accelerate demand. The location near the wastewater facility may also increase access to recycled water for cooling, a major sustainability advantage over freshwater-dependent data centers.
If fully built, the campus could:
Originally reported by Dan Swinhoe in Data Center Dynamics.
