The Green Homes and Technology Centers project in San Jose is scheduled to start in 2025

The Green Homes and Technology Centers project in San Jose is scheduled to start in 2025

SAN JOSE – An ambitious and massive initiative to build thousands of green homes adjacent to data centers in downtown San Jose will begin in 2025, with significant support from PG&E.

Global developer Westbank, utility PG&E and the city of San Jose have joined forces to accelerate the development of green residential towers that will be powered by excess heat from nearby data centers.

Balconies and apartments in a 345-unit residential tower at 323 Terraine Street in downtown San Jose, concept. (Studio Gang)
Balconies and apartments in a 345-unit residential tower at 323 Terraine Street in downtown San Jose, concept.

“Our first new development will be in 2025,” said Andrew Jacobson, U.S. vice president for West Bank.

At about the same time that one or more residential projects break ground on brand new developments in downtown San Jose, Westbank will begin construction of data centers to support power for adjacent residential units.

Historic Bank of Italy Tower, upper floors, at 12 South First Street in downtown San Jose, November 2023.....(George Avalos/Bay Area News Group)....11-6-2023, San Jose, California
Historic Bank of Italy tower at 12 South First Street in downtown San Jose, November 2023.

Aside from the new residential towers, Westbank is also working on a significant renovation project, the historic Bank of Italy tower, which could begin within weeks or months.

Jacobson said Westbank plans to convert the Bank of Italy office tower at 12 South First Street into a residential tower.

“The Bank of Italy will launch in early 2025,” Jacobson said.

Canada-based Westbank believes developing housing next to data centers could be a big catalyst for green housing projects by using excess heat from a data center to power surrounding homes.

Ian Gillespie, CEO and founder of global development company Westbank, speaks during a PG&E Innovation Summit in downtown San Jose on Nov. 13, 2024. (George Avalos/Bay Area News Group)
Ian Gillespie, CEO and founder of global development company Westbank, speaks during a PG&E Innovation Summit in downtown San Jose on November 13, 2024.

“You could run an entire city center with data centers,” Ian Gillespie, CEO and founder of Westbank, said Nov. 13 when the initiative to build green housing with data centers was announced.

At least two of Westbank's residential projects will include a standalone data center that will be built adjacent to the residential buildings and will supply the homes with excess heat from the technology plant that would otherwise be released into the atmosphere.

“Our goal is to capture the heat, provide it to surrounding homes and ultimately connect it to a district energy system in downtown San Jose,” Jacobson said. “The data centers will act as power plants.”

These complicated connections to create a green energy district would likely require PG&E's expertise.

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