Data Center Developers Presented San Jose Plans

Prologis and Menlo Digital shared details for new facilities at a recent South San Jose town hall meeting.

Updated on Oct. 2, 2026 in Data Centers

Isometric editorial illustration of a modern industrial data center building with geometric cooling infrastructure, representing new infrastructure development. — Prologis and Menlo Digital have unveiled designs for new data center facilities in South San Jose, signaling a move toward stricter infrastructure compliance. AI Illustration. Upload story photo >

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Developers Prologis and Menlo Digital presented project plans for two massive data centers in South San Jose during a community town hall. The proposed projects are currently navigating emerging local and state environmental review requirements.

Why it matters

The presentations follow growing community concerns regarding the environmental impact of large-scale infrastructure projects. Developers are now aligning their designs with both pending city standards and recent state-level mandates for facility reviews.

The Menlo Digital facility spans 444,400 square feet, while the Prologis project at 5977 Silver Creek Valley Road covers 516,000 square feet. Each site is designed for 99 megawatts of power capacity.

The players

Prologis

This global logistics real estate firm is developing a 516,000-square-foot facility on Silver Creek Valley Road.

Menlo Digital

This data center developer is proposing a 444,400-square-foot project located on Charlotte Drive.

Gavin Newsom

The current Governor of the State of California signed new legislation mandating data center environmental reviews.

PG&E

This public utility company manages the grid infrastructure through which developers are channeling upfront capital costs.

The details

Menlo Digital plans to build on Charlotte Drive using an air-cooled closed loop system to minimize water consumption. Both developers have committed to covering infrastructure costs upfront via PG&E to avoid impacting local ratepayers.

September 21, 2026: Gov. Gavin Newsom signed legislation requiring environmental reviews for data centers.
September 29, 2026: Developers presented their project plans at a District 2 town hall meeting.
End of 2026: San Jose expects to finalize its new citywide data center standards.

The Tech Race

These projects represent a shift toward high-capacity data infrastructure that must increasingly coexist with strict urban environmental mandates. This mirrors a broader industry effort to move beyond legacy energy usage models by incorporating cooling efficiencies and front-loaded infrastructure funding.

Residents may see developers shift toward more efficient cooling technologies that prioritize water conservation in the local area. Additionally, the move to handle infrastructure costs upfront is intended to protect local utility ratepayers from paying for the capacity added by these new facilities.

The takeaway

Large-scale data center development is increasingly dependent on balancing massive power needs with local environmental transparency. Developers and municipalities are now standardizing these reviews to manage the grid impacts of these 99-megawatt projects.