Prologis Will Propose New North San Jose Data Center

The 514,000-square-foot facility at 326 Charcot Ave. could become operational by 2030.

Updated on Sept. 25, 2026 in Data Centers

Isometric editorial illustration of a large industrial data center complex with power transformers and electrical towers, representing AI computing infrastructure. — Prologis has proposed a 514,000-square-foot data center in North San Jose, a move designed to accommodate the rising energy requirements of artificial intelligence. AI Illustration. Upload story photo >

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Should local governments approve large-scale data center projects in your area?

Prologis has proposed a massive 514,000-square-foot data center in North San Jose to meet rising AI computing demands. The project at 326 Charcot Ave. would require significant electrical grid infrastructure upgrades.

Why it matters

The rapid expansion of artificial intelligence requires substantial increases in computing power, necessitating large-scale data center projects like this one. Success depends on the timely expansion of local utility infrastructure.

The proposed complex spans 514,000 square feet with a 99-megawatt power capacity. It requires two transmission lines and an on-site substation to connect with the expanded PG&E Trimble substation.

The players

Prologis

Prologis is a global logistics real estate investment trust that manages industrial properties and development projects.

PG&E

Pacific Gas and Electric Company is a major utility provider responsible for the electrical grid and natural gas infrastructure in Northern California.

Public Utilities Commission

The California Public Utilities Commission is the state agency tasked with regulating utility services to ensure safe and reliable grid operations.

The details

The development replaces five existing industrial buildings and includes 30,000 square feet of office space. Prologis intends to cover all costs associated with the required electricity grid interconnection.

March 2026: PG&E reported a data center pipeline of 5.09 gigawatts.
June 2026: PG&E reported a data center pipeline of 12.71 gigawatts.
Q1 2028: Construction of the data center could potentially begin.
2028: Off-site PG&E substation upgrades are expected to start.
2030: The data center could become fully operational.

The Tech Race

This project reflects the rapid escalation in power demands driven by the AI arms race among major technology firms. It represents a broader industry trend where real estate developers must secure massive utility infrastructure upgrades to remain competitive in the data center market.

The proposed construction of a 99-megawatt facility highlights the increasing strain on local utility infrastructure that may impact regional power management. Residents should monitor local grid planning as large-scale energy projects move through the regulatory approval process.

The takeaway

Large-scale data centers are reshaping local industrial real estate as developers race to support AI infrastructure. Communities must prepare for the significant electrical grid upgrades required to power these massive facilities.