San Jose Data Center May Lure Tech Giants to South Bay Industrial Site

SAN JOSE, California — A tech center that could become a major computer hub is being planned inside a 302,800-square-foot industrial building at 5853 Rue Ferrari in south San Jose, according to city filings reported by SiliconValley.com.

Prologis, which acquired the property after its $26 billion purchase of Duke Realty, is proposing tenant improvements to create a research and development center inside the building. The plans include at least one computer lab with server racks, along with research spaces, laboratory spaces, work labs and an office area with a conference room.

City documents say the proposed research center and tech hub would operate with 49 megawatts of power. Separate filings describe an on-site electrical facility, cooling chillers and a complete electrical yard to support the project. CBRE is marketing the building to potential tenants.

The project is emerging as energy infrastructure expands nearby. PG&E has doubled capacity at its Santa Teresa Boulevard substation about a mile away, increasing it from 40 megawatts to 80 megawatts at the request of data center developer Equinix.

> "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 told SiliconValley.com. "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."

LS Power is also building a major new energy hub in downtown San Jose as the city prepares for more electricity demand from artificial intelligence, data centers and other energy-intensive industries. No tenant has been publicly disclosed for the Prologis complex, though some commercial property experts believe Nvidia may be among the companies interested in the site.

Saratoga sits in Silicon Valley within the San Francisco Bay Area, roughly 50 miles south of San Francisco. The proposed South San Jose hub would add to the broader regional competition for advanced computing, power capacity and industrial space across the South Bay.

Source: SiliconValley.com / Bay Area News Group, published July 1, 2026.

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