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California  + Bay Area  + Industrial  | 
Data Center

PG&E, San José Commit to Power Grid Upgrades for New Data Center Demand

The City of San José and Pacific Gas and Electric Company (PG&E) announced an agreement committing to power grid upgrades to accommodate the 2,000 megawatts of new demand from data centers in the San José area. Reportedly the first of its kind, the agreement establishes San José as “the West Coast’s premier destination for data center development,” according to a release.

“This landmark agreement will enable us to continue to lead the AI revolution by increasing grid capacity, reliability and efficiency,” said San José Mayor Matt Mahan. “And with clear performance measures built into the agreement, we’re holding ourselves and PG&E accountable — making sure businesses get the power they need, when they need it.”

The additional power will triple energy use in San José, Mahan said at a news conference Friday. PG&E CEO Patti Poppe said the company will invest $2.6 billion in infrastructure for energy projects.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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