San Jose City, Pacific Gas and Electric Company (PG&E), and the global digital infrastructure company Equinix, jointly held a ribbon-cutting ceremony on January 21st to celebrate the official power-on of the Equinix SV12x data center.
The Equinix SV12x data center, the first data center to receive power supply after San Jose City signed an innovative cooperation agreement with PG&E, signifies an important milestone in the city’s digital infrastructure and emerging technology deployment.
Located in the Equinix Great Oak South campus in the southern part of San Jose, the SV12x data center is a two-story building covering approximately 81,896 square feet, specifically designed for large-scale computing to support artificial intelligence, machine learning, and high-performance cloud applications. The center utilizes energy-efficient air cooling systems to reduce energy and water consumption, and has obtained LEED certification, aligning with the city’s sustainability goals through the use of clean energy sources in San Jose.
The distinguished guests attending the event included San Jose Mayor Matt Mahan, City Manager Jennifer Maguire, PG&E President and Executive Vice President of Customers and Enterprise Affairs Carla Peterman, and Equinix President for the Americas, Arquelle Shaw. Multiple representatives from the city government and businesses gathered to witness the important moment of San Jose’s public and private sectors collaborating to drive the digital future.
Mayor Mahan stated in his address that five months ago, San Jose announced the addition of 2,000 megawatts (2GW) of capacity by 2030, making the city the “most prepared city in California in terms of electricity supply.” He highlighted that the agreement between the city government and PG&E includes clear schedules and performance standards, making both parties accountable for the outcomes, providing businesses with greater certainty in electricity supply. The city government has established and integrated new teams to implement a “project delivery-oriented” approach for large electricity consumers, with the SV12x being the first project delivered under this mechanism.
Mayor Mahan emphasized that the SV12x is powered by San Jose Clean Energy, with lower water consumption, and he expects the center to bring approximately $2.5 million in net revenue to the city’s general fund annually, directly benefiting the community.
City Manager Maguire further explained that through the execution agreement with PG&E, the city has adopted proactive planning for large electricity demands rather than reacting afterward. The addition of 20 megawatts in this case, bringing the capacity to 40 megawatts, is a concrete example of forward-looking planning.
From PG&E’s perspective, Peterman stated that PG&E has expanded the Santa Teresa substation for this project to ensure readiness for subsequent customer connections. The site can provide 40 megawatts of power, equivalent to the electricity consumption of about 30,000 households simultaneously.
Peterman also pointed out that Equinix is responsible for the substation upgrades and related taxes, avoiding shifting costs to other PG&E customers; large electricity consumers shoulder more fixed network costs, thereby helping to alleviate rate pressures on other users.
Equinix’s President for the Americas, Shaw, emphasized that Equinix has been deeply rooted in Silicon Valley for over 25 years, with data centers serving as critical engines supporting government, healthcare, finance, and daily digital services. The company commits to responsibly sharing public costs, assisting in mitigating electricity price pressures, investing in workforce development and internship programs to create high-quality employment opportunities, consolidating San Jose’s position as an innovative hub.
During media questioning, Mayor Mahan explained the connection between this project and the agreement signed last year to add 2GW of capacity. He noted that in the past, cities and utilities often blamed each other and operated independently, but now they collaborate to integrate service delivery, anticipate growth locations and demands, streamline approval processes, and proactively upgrade local grids.
Peterman added that under the agreement, PG&E has committed to investing $41 million in the San Jose region, with SV12x being the “first of many projects.” Currently, there are over ten data centers in the area listed in the development pipeline, with a prospect of progressing “one project after another.”
Equinix has over 10 data centers in the San Francisco Bay Area, concentrated in San Jose, Santa Clara, and Sunnyvale. The Great Oak South campus in San Jose is the largest data center cluster in the Bay Area for Equinix, with a total floor area of approximately 564,000 square feet as part of the overall development plan (including SV-12, SV-13, SV-14), complemented by the Santa Teresa substation and grid infrastructure construction, making it a crucial digital infrastructure hub in Silicon Valley.
According to the Equinix website, Equinix operates over 270 data centers in 75 major cities worldwide, serving as vital hubs for the global cloud and network ecosystem.