A 159-acre stretch of vacant land in north San Jose could soon host more than 1 million square feet of data center space, and Prologis is the developer of choice.
Prologis is the frontrunner among developers that submitted proposals for the site owned by the San Jose-Santa Clara Regional Wastewater Facility, the Silicon Valley Business Journal reported.
The logistics giant’s plan, dubbed the Sustainable Technology, Engineering and Manufacturing (STEM) Park, would deliver about 1.7 million square feet of data center space across four buildings, along with another 785,000 square feet for high-tech manufacturing. The project would include five electric substations to power the energy-hungry operations.
The bid from Prologis came out on top over plans from Trammell Crow Company and Catellus-Deca, a joint venture between Catellus Development Corporation and Deca Companies.
Catellus-Deca pitched 3 million square feet of flex space that could become data centers, research and development space or a business park; the plans also included 562,000 square feet of retail. Trammell Crow proposed 3.2 million square feet of warehouse space, 54,000 square feet of office and 60,000 square feet of retail.
Officials favored Prologis for its commitment to finance all construction and its higher projected economic return for San Jose, according to a City of San Jose memo cited by the outlet. Catellus-Deca was tapped to stay on deck as a backup developer should an alternative be needed.
The city bought the land as a buffer for the wastewater treatment plant, and it is restricted against odor-sensitive uses such as housing or hotels. San Jose began seeking proposals in May with a goal of spurring job growth in tech-focused industries and generating recurring ground-lease and tax revenue.
Prologis’ proposal still has to go through the approval process. The proposal is set to be heard at the City of San Jose’s Treatment Plant Advisory Committee’s meeting this week, and the San Jose City Council meeting on Nov. 18. If Prologis’ project is greenlit at the upcoming meetings, it must still complete CEQA review and ground lease negotiations, among other steps.
The firm aims to begin construction in 2028 with initial occupancy in 2030.
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