Powering San José

Energy & Infrastructure for Innovation

San José is at the heart of Silicon Valley innovation — and we’re building the energy and infrastructure backbone to support the next generation of data centers that power cloud computing, AI, logistics, and communications. Through strong partnerships, proactive planning, and dedicated business development support, the City of San José makes it easier and faster for large energy users to connect and grow.

This page serves as a one-stop resource for prospective data center developers and operators, as well as for members of the community interested in learning more about our energy and infrastructure initiatives.

The City of San José is committed to being your partner in development. The Office of Economic Development and Cultural Affairs provides concierge-style support to help you navigate energy interconnections, zoning, and permitting.

We’ll connect you to:

Technical experts at PG&E.
City departments for land use and environmental approvals.
Workforce and business resources that support long-term success.

For assistance, contact Erica Garaffo, Large-Load Energy Customer Development Lead: erica.garaffo@sanjoseca.gov.
For help establishing and growing your business, connect with Corporate Outreach Officers Noëlle Rabago (noelle.rabago-boesenberg@sanjoseca.gov) and Doug Moody (doug.moody@sanjoseca.gov).

PG&E Partnerships & Faster Interconnections

PGE Agreement Presser July 2025

Above: A July 2025 event recognizing a new agreement between PG&E and the City of San José

The City of San José and PG&E have partnered to streamline the interconnection process for large-load energy users such as data centers. This collaboration is designed to:

Accelerate timelines for new and expanding projects.
Improve transparency with joint planning and communication.
Deliver certainty, specifically for large-load projects.

Power capacity and accessibility is the critical factor determining project feasibility and timeline. The information below outlines key considerations, projects, and locations to help developers identify properties with faster, more reliable access to electrical infrastructure.

Key Factors for Power Access

Transmission Line Proximity

Impact on Timeline: Properties located closer to existing transmission lines require fewer easements, potentially reducing project lead time by 6-12 months.

Evaluation Criteria

Distance from property boundary to nearest transmission line
Available right-of-way and easements

Expansion Capacity Potential in SJ Area Substations

Current infrastructure with available capacity can significantly accelerate project timelines. See below for list of substations, existing transmission lines and planned capacity upgrades in the area. The "Grid Resource Integration Portal" is a mapping tool that shows the location of PG&E infrastructure.

Substations within 15 miles of the San José Area with physical space or plans for expansion (visit https://grip.pge.com/ to view Substation locations)

Substations	Bus Config	Future Open Bay Position	kV
Metcalf	BAAH	Yes	500
Metcalf	DBSB	Yes	115
Monta Vista	DBSB	Yes	230
Monta Vista	DBSB	Yes	60
Monta Vista	BAAH	Yes	115
Crazy Horse	BAAH	Yes	115
FMC	BAAH	Yes	115
Los Esteros	BAAH	Yes	230
Newark	DBSB	Yes	115
Newark	DBSB	Yes	60
Newark Dist	RING	Yes	230
Charcot (2030 in-service)	BAAH	Yes	115
Silver Creek (2030 in-service)	BAAH	Yes	115
Ringwood (2026 in-service)	BAAH	Yes	115

While proximity to existing transmission infrastructure and available capacity are strong indicators of site viability, developers should treat this information as preliminary guidance for comparative analysis between sites. Detailed engineering studies and utility coordination must support final site selection to ensure project success and accurate timeline projections.

Large Load Cluster Study Process

When you're ready to submit an application for a large-load project (20MW or more), keep in mind PG&E has a new Large Load Cluster Study Process to study these projects as a cohort. The following table outlines the high-level steps and what to expect for the Cluster Study Process.

Developers may submit a new load application by selecting “new service” via the PG&E portal. New users will be required to set up an account with contact information.

	1. Load Inquiry for a single site	2. Load Inquiry for a specific site or sites	3. Feasibility report for a single site	4. PES/Cluster Study
Fee	$0	$10,000/site	$50,000	$125,000*
Timeline	1-2 weeks	3-6 weeks (Additional time may be required depending on number of sites in the request)	3 months	6-8 months
Cost Allocation	No	No	No	Yes
Earliest Achievable In-Service Date	No	No	No	Yes
Interconnection Options	Yes (Will list closest electrical facilities and if there are available positions)	Yes	Yes	Yes
Preliminary T-line & Substation Scope	No	No	Yes	Yes
Capacity Upgrades	No	No	No	Yes
Deliverable	Email communication providing non-binding estimates on available capacity and interconnection positions at PG&E substation. Available capacity is based on a timestamp and may differ if other studies are active. Response to include caveats.	Load Inquiry Report that lists: - Nearby transmission lines - Nearby substations - Preliminary load hosting study results - List of upgrades in the area previously approved Next steps: move on to the PES stage	Feasibility Study Report for interconnection facilities only. Does not include System Impact Study to identify capacity upgrades. Response to include caveats. Next steps: For Data Center projects, apply to the next open Data Center Cluster or submit a Large Load Application for a Preliminary Engineering Study.	Detailed Study Report with interconnection and capacity upgrade scope, cost, cost allocation, earliest achievable in-service date, and next steps to initiate project implementation.

Standard disclaimer for items 1-3 above:

The information contained within this presentation is preliminary based on study assumptions. This is not an offer to supply service nor do any terms within this presentation create binding obligations on any party. It is highly recommended that the customer submit an application for a Preliminary Engineering Study as part of a load interconnection cluster study so that PG&E can perform an in-depth study. The presented Load Hosting Information including Available Capacity and Substation Configuration information is based on a snapshot in time and may not have the latest information due to system conditions being dynamic. This study includes only existing and CAISO Approved and Planned projects and not future capacity. This study does not obligate the PTO or CAISO to conduct additional studies performed through the Large Load Interconnection or other CAISO Planning process. Data and assumptions used and the results provided in the presentation may become outdated at the time the complete Interconnection Request is submitted. For the results presented on the map, PG&E shall, in good faith, include data that represents the best available information at the time of reporting. The final capability at the substation will be determined in the appropriate study and may differ from the reference values listed upon more detailed engineering review. This study shall not replace detailed engineering review and actual studies performed by the PTO, nor replace official CAISO or PG&E published results. This list may not include non-CAISO-controlled substations, transmission lines and may not include non-PTO-owned equipment.

Transmission & Grid Reliability Investments

San José is directly benefiting from major new transmission projects that expand regional capacity and strengthen reliability.

LS Power HVDC Lines: LS Power is constructing two new 1000MW capacity high-voltage direct current transmission lines in San José (2000MW total). These lines are slated to be energized in mid-2028 and designed to bring more power into the region to support high-demand users like data centers
Important: Both planned lines will require PG&E to construct additional tap infrastructure for customer connections

PG&E Infrastructure Improvements: PG&E is proposing $1.5 billion of infrastructure improvements to increase capacity in the South Bay. Proposed projects that will increase capacity in San José include
- Two New Substations in North San José with additional expansion capacity
- New Substation in Edenvale with additional expansion capacity
- Expansion of Substation A and B in Downtown
- New Transmission Line connecting Substation A and B

Development Sites in Strategic Locations

Land Use, Zoning, and Permitting

San José offers clear pathways for data center development:

Zoning Guidance: The City has identified zones where data centers are appropriate, balancing land use with environmental and community considerations. Review local zoning and permitting requirements (Review local zoning and permitting requirements.

The following zoning districts allow data centers with a special use permit:
- CIC Combined Industrial/Commercial
- TEC Transit Employment Center (with some caveats)
- IP Industrial Park
- LI Light Industrial
- HI Heavy Industrial

Permitting & Approvals: Developers can expect a transparent permitting process, with clear steps and city staff available to guide you at each stage.

Developable Sites: San José’s Office of Economic Development and Cultural Affairs works closely with developers to review potential parcels.

Leveraging San José Clean Energy for Data Center Operations

San José Clean Energy (SJCE) is the city’s community choice electricity provider, established in 2019 to supply cleaner energy at competitive rates, while offering local control, transparency, and community benefits.

As San José accelerates its data center infrastructure, SJCE can play a key role in aligning growth with decarbonization goals:

Fair and Reasonable Rates: SJCE provides electricity at fair rates that are competitive to PG&E’s bundled service, supported by long-term renewable energy contracts that promote cost stability. For data centers with large, continuous energy needs, this means dependable, transparent pricing that supports long-term planning.
Clean Energy Options up to 100% Renewable Energy: All SJCE customers receive electricity that is at least 62% renewable and nearly 90% carbon-free. Data centers can also choose TotalGreen, which delivers 100% renewable electricity without additional equipment. Whether your organization is pursuing corporate sustainability targets or advancing toward carbon neutrality, SJCE provides a direct path to meet those commitments.
Local Programs & Incentives Supporting Energy Efficiency: SJCE supports solar expansion, battery storage, and demand-side management programs. Data centers can align with or partner in these initiatives to reduce peak demand and improve operational resilience.

Learn more about SJCE's Commercial Service Options