San Jose races to become Bay Area's data center capital PG&E customers could pay the price
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San Jose races to become Bay Area's data center capital  PG&E customers could pay the price
"In the rush to build colossal data-processing centers for Silicon Valley's suddenly booming artificial intelligence industry, San Jose is positioning itself as the Bay Area's epicenter for data center development, dominating PG&E's internal pipeline of proposed and under-construction projects it plans to power. PG&E's data center project pipeline shows that for San Jose, it has received requests to supply electricity to 11 projects totaling 1,630 megawatts of capacity"
"Data centers hold thousands of computer chips that process AI tasks, from chatbot queries to complex scientific research. Amid a global frenzy over AI, major Silicon Valley technology companies have invested hundreds of billions of dollars, with venture capitalists backing hundreds of Bay Area AI startups. Concerns about the facilities also extend to effects from their massive power consumption on the reliability of electricity supplies, and on the water supply from their heavy consumption via cooling and power generation."
"Backup generators, usually diesel-powered, raise worries about pollution and community safety. San Jose Mayor Matt Mahan has embraced AI and the data centers needed to process it. City officials highlight San Jose's location within 25 miles of dozens of Fortune 500 tech headquarters — proximity that jacks up processing speed for the Silicon Valley companies using data centers for AI. City Hall's enabling stance is a major driver, said San Jose civic-engagement consultant Ellina Yin,"
San Jose has requests to supply electricity for 11 data-center projects totaling 1,630 megawatts, enough for about 1.2 million homes and exceeding city housing units by more than threefold. Hayward follows with four proposed projects totaling 975 megawatts. Data centers house thousands of chips running AI workloads and have attracted massive investment and startup activity across the Bay Area. The facilities raise concerns about grid reliability, heavy water use for cooling and power generation, and pollution and safety risks from diesel backup generators. San Jose's proximity to many tech headquarters, large development sites, water infrastructure, and a PG&E power-supply deal are driving developer interest.
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