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San Jose approves data center that would occupy big office building

San Jose city officials approved a data center project at 300 Holger Way, converting a 97,800-square-foot office building into a tech hub, with 85% of the space dedicated to computer equipment. The approval, granted on July 8, reflects the city's push to attract AI-driven data centers, though residents have until July 20 to appeal. Menlo Equities, the property owner, filed the proposal in 2025, and no exterior changes are planned.

read1 min views1 publishedJul 17, 2026
San Jose approves data center that would occupy big office building
Image: Mercurynews (auto-discovered)

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Trinity Audioplayer ready...SAN JOSE — City officials have approved a data center that would be developed inside a San Jose office building, fresh evidence of the municipality’s interest in attracting computer-intensive tech hubs.

The data center is slated to be developed at 300 Holger Way in north San Jose, according to city documents. The building occupies a 4.9-acre site.

RELATED: Amazon data center rises in Gilroy. Residents say they were left in the dark

The artificial intelligence revolution has intensified interest in data center projects in San Jose, with proposals for the tech hubs in the works in multiple locations in the city.

San Jose city staffers approved the 300 Holger Way data center project on July 8. Residents, however, have until July 20 to appeal the decision, a municipal planning official told this news organization.

Menlo Equities, a Bay Area real estate firm that owns the property through an affiliate, filed the data center proposal in 2025, planning files show.

“No changes to the existing site or building exterior are proposed,” a city planning document states.

The footprint of the research and development building won’t be altered as a result of the project.

The building where the data center would be developed totals 97,800 square feet, according to the development plans for the tech hub.

An estimated 85% of the building would be developed as “computer equipment space,” the development plans state.

“The proposed improvements are limited to interior tenant improvements, including the installation of data racks,” according to the project proposal.

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