# Nvidia leases San Jose industrial building for possible AI and advanced tech work > Source: > Published: 2026-07-29 18:02:34+00:00 **Getting your** [Trinity Audio](//trinityaudio.ai)player ready...SAN JOSE — Nvidia is [leasing a building](https://www.mercurynews.com/2026/07/01/tech-san-jose-web-data-nvidia-build-property-develop-jobs-google/) in South San Jose as the company continues its expansion in the South Bay, according to several sources familiar with the agreement as well as commercial real estate market reports. The 302,800-square-foot building at [5853 Rue Ferrari in the Santa Teresa district](https://www.mercurynews.com/2026/07/01/tech-san-jose-web-data-nvidia-build-property-develop-jobs-google/) is expected to have advanced technology facilities on-site, according to proposals submitted to city planners in April and June. At least one computer lab with server racks is proposed. The building is also expected to include research and laboratory spaces, work labs, and an office area with a conference room. The center would operate with 49 megawatts of power, the April filing stated. A March filing with city planners envisioned the creation of on-site electricity facilities. The [property is owned](https://www.prologis.com/industrial-properties/building/sba05601-prologis-south-san-jose-1) by real estate development and investment firm [Prologis](https://www.prologis.com/industrial-properties/building/sba05601-prologis-south-san-jose-1). The company is carrying out [tenant improvements and upgrades](https://www.mercurynews.com/2025/09/23/san-jose-tech-center/) at the site. CBRE, a commercial real estate firm, is in charge of marketing. In recent days, considerable construction activity was underway next to the building, whose shell is complete, a direct observation of the property revealed. Work also appeared to be in progress inside the structure. Prologis gained ownership after its [$26 billion purchase of Duke Realty](https://www.prologis.com/duke-realty-acquisition). In 2020, Duke Realty paid $40.6 million for a 17-acre site that includes the complex. Neither Prologis nor Nvidia responded to multiple requests for information regarding the building. Santa Clara-based Nvidia has bought numerous parcels next to and near its headquarters at 2788 San Tomas Expressway to accommodate a significant expansion of its primary administrative complex. As Nvidia looks to expand, [PG&E has doubled the electricity capacity of its substation](https://www.mercurynews.com/2026/06/05/pge-san-jose-economy-power-tech-jobs-electric-data-energy-develop-ai/) at 6402 Santa Teresa Blvd. in South San Jose from 40 megawatts to 80 megawatts at the request of data center developer Equinix. Oakland-based PG&E configured the substation, which is about a mile from the Rue Ferrari complex, so the utility could readily expand beyond the 80-megawatt level. “We made it scalable so we can easily add equipment to the substation to support additional load or other customers,” PG&E spokesperson Stephanie Magallon said. “There are plans to further expand the Santa Teresa Substation in the next three years to help us meet San Jose’s growing energy needs.”