San Jose is gearing up for an exciting transformation, where innovation and sustainability collide in a groundbreaking project set to reshape Downtown San Jose. A dynamic collaboration between PG&E, developer Westbank, and city leaders is bringing eco-friendly housing towers and data centers together, creating a green energy hub that could put San Jose on the map as a global leader in urban innovation.
A Bold Step Toward Sustainability
Imagine a city where excess heat from data centers powers the homes next door. That’s exactly what’s in store at 323 Terraine Street, near San Pedro Square. Westbank, alongside local real estate visionaries, is planning a 345-unit housing tower paired with a data center on a once-vacant lot. “The data center would be in the same footprint as the office building,” said Andrew Jacobson, Vice President of the U.S. for Westbank, noting the shift from an earlier office-focused plan. This mixed-use development, awaiting city approval, aims to break ground by year’s end, delivering both housing and a sustainable energy solution.
The bigger dream? A district energy system connecting multiple housing clusters and data centers across Downtown San Jose. “Our long-term vision is with multiple data centers and housing clusters, the idea is to connect them all and create a downtown San Jose district energy system,” Jacobson explained. It’s a forward-thinking move that could redefine how cities use energy.
Fueling Growth and Innovation
PG&E is all in, preparing for a tech and AI-driven boom in San Jose. “We are preparing for rapid economic expansion, particularly in tech and AI in San Jose,” said Teresa Alvarado, PG&E’s Vice President for the South Bay and Central Coast Region. This project isn’t just about buildings—it’s about powering the city’s future. Bob Staedler of Silicon Valley Synergy agrees, urging swift action: “The city of San Jose needs to expedite the development of this project. The needed housing and revenue to the city makes it a win-win.”
Meanwhile, Plug & Play Ventures is adding to the buzz with plans for an AI Center of Excellence in Downtown San Jose. This hub will nurture startups, partner with San Jose State University for a learning center, and open a public space where “everyone can come look, touch, feel the applications of AI,” said Tevin Panchal, head of growth at Plug & Play. Set to welcome its first startups by April, it’s poised to boost the local economy with a focus on fields like energy, health tech, and cybersecurity.
More on the Horizon
Westbank isn’t stopping here. They’re also converting the historic Bank of Italy tower into housing, blending San Jose’s past with its future. Together, these efforts signal a vibrant evolution for the city—one where sustainability, technology, and community thrive side by side.
San Jose is stepping boldly into a new era assuming these projects get off the ground. It’s not hard to see the city becoming a beacon of green innovation.
