**PG&E and San José Commit to Major Power Grid Upgrades to Meet Soaring Data Center Demand**
The City of San José and Pacific Gas and Electric Company (PG&E) have announced a groundbreaking agreement to upgrade the region’s power grid in response to the surging energy demands of new data center developments. The initiative will accommodate 2,000 megawatts of additional power — a move officials say is unprecedented and positions San José as the leading hub for data center growth on the West Coast.
“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.”
Mayor Mahan noted that the additional energy load will effectively triple energy use in San José. At a Friday news conference, PG&E CEO Patti Poppe confirmed the utility will invest $2.6 billion in infrastructure to support these critical energy projects.
With data centers playing a central role in powering technologies like artificial intelligence and cloud computing, the collaboration between San José and PG&E signals a significant step in future-proofing the city’s infrastructure and sustaining economic growth in the digital age.
