San Jose’s Downtown is on the cusp of a transformation that could redefine its landscape and economic future. City officials are enthusiastic about two major projects proposed by Westbank, blending data centers with housing developments to deliver a powerful one-two punch of innovation and growth. The San Jose City Council has taken decisive action, directing building officials to prioritize these initiatives due to their potential to spark economic vitality and inspire further development. This bold move underscores the city’s determination to cement its place as a thriving hub in Silicon Valley.
The financial benefits alone are enough to turn heads. A proposed 99 MW data center could bring in between $3.5 million and $6.4 million in taxes and fees each year, creating a reliable revenue stream for San Jose. But the impact goes beyond dollars and cents—these projects are expected to generate jobs and draw new businesses to Downtown San Jose. Andrew Jacobson from Westbank captured the brilliance of this approach perfectly: “Housing is very challenged in San Jose, but data centers are not. When you couple those together, you have viable projects.” This clever pairing could ease the city’s housing crunch while strengthening its tech backbone.
Sustainability is also a key piece of the puzzle. The projects include plans for a district energy system, which could reduce energy costs for other developers in the area. This isn’t just smart for Westbank’s bottom line—it’s a gift to future Downtown growth. To sweeten the deal, the city has extended economic incentive programs, like the downtown high-rise initiative that waives construction taxes and fees. These efforts show San Jose’s commitment to overcoming market hurdles and keeping the momentum going for bold, forward-thinking development.
Downtown San Jose stands to gain more than just new skyline features. By merging cutting-edge technology with practical housing solutions, the city is laying the groundwork to tackle some of its toughest challenges head-on.
