The artificial intelligence revolution is transforming more than just technology, it’s reshaping San Jose’s energy infrastructure. Pacific Gas and Electric (PG&E) is experiencing an unprecedented surge in data center electricity demands, with tech giants like Google and Microsoft driving significant power expansion in the region.

PG&E is currently evaluating requests for new data centers that would require a staggering 8.7 gigawatts of electricity, enough to power 6.5 million homes. With 18 data center projects in the final engineering phase, the utility is preparing for a massive technological transformation between 2026 and 2030.

The potential benefits extend beyond technological advancement. Mike Medeiros, PG&E’s vice president of South Bay Delivery, suggests that these new data centers could actually help reduce customer electricity bills. By spreading fixed infrastructure costs across more mega customers, residential ratepayers might see their monthly expenses decrease by 1-2%.

To meet these escalating energy needs, PG&E is getting creative. The company has partnered with Smart Wires, a technology firm specializing in power grid optimization. Their innovative solution involves deploying cutting-edge power flow control devices at the Los Esteros Energy Center in north San Jose, which will help redirect electricity and prevent potential thermal overloads.

Microsoft is already planning two data centers in north San Jose, with additional private developments in the works. This surge reflects growing confidence in PG&E’s infrastructure and the region’s continued technological evolution.

As artificial intelligence continues to push technological boundaries, San Jose remains at the forefront of this transformative moment. The city’s energy infrastructure is not just adapting, it’s actively enabling the next generation of technological innovation.

The implications are clear: Silicon Valley isn’t just changing technology; it’s reimagining how we power our digital future.