Housing tower and data center planned for downtown San Jose

A new project in downtown San Jose may bring both housing and a data center to the area by the end of this year. This initiative is part of a larger goal to turn the city's urban center into a hub for green energy. The project is a collaboration between PG&E, developer Westbank, and local city leaders. They aim to build eco-friendly housing towers alongside data centers. Westbank plans to develop several housing projects in downtown San Jose. The first site is a vacant lot at 323 Terraine Street. Westbank hopes to begin construction once they receive approval from the city. They are planning a 345-unit housing tower with a data center next to it. The original plan included an office building, but due to a downturn in the office market, they shifted to this new proposal. The property was purchased in 2021 for $11.4 million and is located near State Route 87. This project would mark Westbank's first new construction in downtown San Jose. They are also working on converting an existing historic building, the Bank of Italy, into housing. At the same time, PG&E is expanding its efforts to support the growth of tech and AI in San Jose, anticipating a demand for data centers and housing. The company’s vice president, Teresa Alvarado, mentioned the city's potential for rapid economic growth in tech sectors. Additionally, Plug & Play Ventures is planning an AI Center of Excellence in downtown San Jose. This center will support startups and provide learning opportunities for students. The goal is to enhance local innovation and improve the economy. Westbank believes that linking housing to data centers could promote sustainable living. Their vision includes creating a district energy system in downtown San Jose, utilizing excess heat from data centers to power nearby homes.