# Three-story data center proposed for San Jose industrial site > Source: > Published: 2026-08-28 16:37:49+00:00 **Getting your** [Trinity Audio](//trinityaudio.ai)player ready...SAN JOSE — A special use permit was filed with the city for a three-story data center at a former industrial site in North San Jose, an area that hosts tech companies such as Google, Cisco and Apple. San Francisco-based [real estate firm Prologis](https://www.prologis.com/insights-news/blog/prologis-announces-responsible-data-center-development-commitments) is proposing to build a 514,000-square-foot structure at 326 Charcot Ave. that would replace five older industrial and commercial buildings on the property. At the corner of Charcot and Zanker Road, the new building would feature a modern facade with curtained walls. The complex would have a total power capacity of 99 megawatts and be built with an onsite substation and backup generator in a dedicated yard. PG&E is planning to expand its substation capacity in the vicinity to an extent that would surpass the data center’s power requirements, according to Prologis. The real estate firm will fund all of the costs to hook up the data center to the electricity grid, including any PG&E substation upgrades required for interconnection. Prologis also plans to include and fund a second, independently routed transmission line to enhance system reliability and reduce reliance on backup generation. The real estate firm intends to enroll in San Jose’s Total Clean Energy program or a similar program with the goal of 100% carbon-free electricity. In South San Jose, [Prologis previously proposed a data center](https://www.mercurynews.com/2026/07/08/san-jose-tech-property-data-economy-ai-build-real-estate-develop-jobs/) that would total 516,000 square feet on 15 acres of empty land at 5977 Silver Creek Valley Road. Data centers have encountered [growing opposition](https://www.mercurynews.com/2026/08/13/tech-property-san-jose-data-center-build-develop-economy-jobs-develop/) in some Bay Area cities and around the country amid concerns over environmental impacts, electricity bills, and water use. The tech industry views them as a crucial factor in creating enough computing power for technologies such as artificial intelligence. Oakland-based PG&E reports that its pipeline of proposed data centers totaled 12.71 gigawatts at the end of June, more than double its data center pipeline of 5.09 gigawatts at the end of March. With demand growing for data centers, [PG&E has launched efforts](https://www.mercurynews.com/2026/05/20/project-to-boost-san-joses-electricity-capacity-breaks-ground/) to greatly expand its [substation facilities](https://www.mercurynews.com/2026/06/05/pge-san-jose-economy-power-tech-jobs-electric-data-energy-develop-ai/) in San Jose through an array of endeavors.