Prologis files plans for 516,000-sq-ft, 99-megawatt data center in South San Jose

Prologis has filed plans with San Jose city planners for a three-story, 516,000-square-foot data center at 5977 Silver Creek Valley Road in South San Jose, according to reporting by George Avalos in the Mercury News. The proposal calls for 99 megawatts of electricity capacity, an onsite substation, a dedicated backup generation facility, and roughly 30,000 square feet of office space on a 15-acre site.

Site selection and power proximity

Prologis cited the site's position within an established industrial corridor and its proximity to existing power infrastructure as key factors in the selection. The parcel sits approximately 2.5 miles from a PG&E substation at 6402 Santa Teresa Boulevard, which PG&E recently upgraded to 80 megawatts of capacity, double its previous level, the Mercury News reported.

PG&E has also configured the substation to accommodate further expansion beyond its current rating, and plans to grow capacity past what the Prologis project alone requires in order to serve additional customers and improve broader grid reliability in the surrounding area. That kind of pre-built headroom at a nearby utility node is a meaningful logistical advantage when permitting a facility at this power scale.

Prologis takes on transmission costs upfront

One operationally notable commitment in the filing: Prologis stated it will cover the transmission interconnection work required for the project rather than passing those costs through to future tenants or seeking utility cost-sharing. The company is also funding a second, independently routed transmission line to the site, which it says will improve system reliability and lower dependence on backup generation.

That upfront capital commitment on transmission infrastructure reflects a broader pattern among large industrial real estate owners building speculative or pre-leased data center campuses in power-constrained markets. By controlling interconnection investment directly, Prologis shortens the procurement and commissioning timeline for prospective tenants.

Water use and clean energy commitments

Annual water demand for the facility is projected to equal that of roughly 40 households, with irrigation as the primary driver rather than cooling systems, the Mercury News noted. Prologis stated it intends to enroll in San Jose's Total Clean Energy programs, or an equivalent initiative, to support carbon-free power consumption at the site.

Site history and Prologis portfolio context

The Silver Creek Valley Road property came into the Prologis portfolio through the company's 2022 acquisition of Duke Realty for $23 billion, the Mercury News reported. A Duke Realty affiliate had purchased the site in 2021 for $40.2 million in an all-cash transaction from Palo Alto-based Peery Arrillaga. The parcel had remained undeveloped since that purchase.

Build timeline and next steps

Prologis stated that full build-out would take approximately two years and proceed in phases. The project remains in the city planning review stage. For enterprise teams evaluating Bay Area colocation or wholesale data center options in the 2027-2028 timeframe, the Silver Creek Valley Road facility represents a new supply entrant in a market where available capacity at this power density has been scarce.

What this means for your team

• Capacity pipeline: Add this 99-MW facility to your 2027-2028 Bay Area data center supply watch list; project approval and phased delivery timing will determine when capacity actually comes to market.
• Power SLA evaluation: The dual independently routed transmission lines and onsite substation are design features worth benchmarking against other shortlisted facilities when evaluating resilience requirements.
• Clean energy compliance: If your organization has Scope 2 carbon commitments, confirm whether Prologis's planned enrollment in San Jose clean energy programs would satisfy your reporting requirements before lease negotiations begin.
• Grid context: Track PG&E's Santa Teresa substation expansion separately; incremental capacity added there beyond this project's needs may signal broader availability for adjacent facilities or future phases.