# Tech-ready data center may sprout inside vast San Jose industrial hub > Source: > Published: 2026-07-01 14:39:20+00:00 **Getting your** [Trinity Audio](//trinityaudio.ai)player ready...SAN JOSE — A data center that could become a computer hub of the type to entice tech titans such as Nvidia might sprout inside a vast San Jose industrial building, plans on file at City Hall show. The tech complex is being planned at [5853 Rue Ferrari](https://www.mercurynews.com/2025/09/23/san-jose-tech-center/) in south San Jose, according to a filing submitted to city planners on June 26. Tenant improvements are being proposed to create a data center inside the building, which totals roughly 302,800 square feet. Prologis, which gained ownership of the property after its [$26 billion purchase](https://www.prologis.com/duke-realty-acquisition) of Duke Realty, is carrying out the upgrades. The June filing sketches out plans for at least one computer lab with server racks. A filing with the city in April 2026 states that the building is slated to become a research and development center with research spaces, laboratory spaces, work labs and an office area with a conference room. The data center and tech hub would also operate with 49 megawatts of power, the April filing states. A March filing with city planners envisions the creation of an on-site electricity substation. The project is slated to add cooling chillers and a complete electrical yard to help meet the energy requirements for the tech complex, the city documents show. CBRE, a commercial real estate firm, is marketing the building to potential tenants. By happenstance, PG&E has decided to [double 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 at the request of Equinix, a data center developer. This PG&E substation is about a mile from the Rue Ferrari complex, and its capacity went from 40 megawatts to 80 megawatts. Oakland-based PG&E has configured the substation on Santa Teresa so the utility could readily expand the electricity hub 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.” Adding to all of these efforts, [LS Power is building a major new energy hub in downtown San Jose](https://www.mercurynews.com/2026/05/20/project-to-boost-san-joses-electricity-capacity-breaks-ground/) that could help the city and PG&E accommodate surging electricity demand from artificial intelligence, data centers and other energy-hungry industries The potential tenant or tenants for the Prologis complex on Rue Ferrari weren’t publicly disclosed. Some commercial property experts believe Nvidia is among the tech companies that are interested in the site. In 2020, [Duke Realty paid $40.6 million for a 17-acre site](https://www.mercurynews.com/2020/12/03/real-estate-developer-buys-san-jose-huge-industrial-center-tech-amazon/) that includes the 5853 Rue Ferrari complex.