Stack Infrastructure to Build Big Data Center in San Jose

Denver-based developer Stack Infrastructure has proposed to build 500,000 square feet of data center space in San Jose, according to public records, adding to the large Silicon Valley pipeline for such developments.

Data centers house technological infrastructure for building, running and delivering online applications and services.

The project calls for two buildings located at 2400 Ringwood Avenue and 1849 Fortune Drive. The two data centers will total 522,194 square feet, along with a 36,573-square-foot manufacturing building and a 150,000-square-foot parking structure. Both centers would have a maximum height of 80 feet and feature loading docks, storage, office space and commercial space.

Two commercial buildings totaling 135,000 square feet would be demolished to make room for the project.

The facility will be powered by a 100 megavolt electrical substation on the eastern section of the property. The buildings will also be powered by 36 three-megawatt and three one-megawatt diesel-fired backup generators. In the industry, space is measured in megawatts as an indication of how much power is required to operate the facility.

Silicon Valley has seen the demand for data center space swell in the past year, which has led to a number of projects added to the pipeline. According to a CBRE report, Silicon Valley ranks third in North America in terms of net absorption of data centers with 62.4 megawatts, just slightly trailing 64.4 MW in Hillsboro, Oregon. Northern Virginia leads the pack by a wide margin with 436.9 MW of net absorption in 2022.

While Silicon Valley was third in net absorption, it had the largest data center construction pipeline at the end of 2022. More than 141 MW was under construction, 66 percent of which was pre-leased. There were 66 MW of new deliveries in 2022, up significantly from 21.5 MW in 2021. The market’s inventory now totals 379.6 MW.

“Limited land and power supply has led some providers to move from Santa Clara to neighboring parts of Silicon Valley, where there are redevelopment opportunities,” Jerry Inguagiato from CBRE said. “Despite the uncertainty of the macroeconomic environment and rising construction costs, providers are eager to find ways to meet demand as it continues to outpace supply.”