San Jose data center developers Prologis and Menlo Digital have committed to conducting new environmental reviews for their proposed projects in South San Jose and adhering to new city-wide standards for data centers. This commitment follows a Tuesday community town hall where residents expressed concerns about the environmental and community impacts of these facilities. The city is currently developing uniform data center standards, which are expected to be finalized by the end of the year.
The town hall, organized by the District 2 Neighborhood Leadership Council, brought together residents and representatives from the development companies. Allison Koo, senior vice president of development and construction for Menlo Digital, stated that the company will comply with the new city standards once they are released.
Menlo Digital plans to build a 444,400-square-foot data center on Charlotte Drive in South San Jose, between Lexington Avenue and Raleigh Road. This facility is proposed to use 99 megawatts of power, which is described as enough energy to power 99,000 homes. The project includes an on-site substation and backup generators and is located near residential areas. To manage water use for equipment cooling, Menlo Digital’s facility would employ an air-cooled, closed-loop system that recirculates water through pipes.
Prologis is developing another project at 5977 Silver Creek Valley Road in South San Jose. Their proposed 516,000-square-foot data center would also use 99 megawatts of power and include an on-site substation and backup generator yard. Koo also noted that the developers would incur the full costs for any required infrastructure, such as power transmission cables, ensuring these costs are not passed to ratepayers. She added that PG&E estimates data centers can reduce customer bills by 1% for every 1 gigawatt of data center usage.
Residents at the town hall voiced multiple concerns, including the potential effects on their neighborhoods, the possibility of increased power costs for consumers, and how developers plan to mitigate pollutants. There were also questions about whether developers would commit to treating contaminated water on-site. Diesel generators, which are used by data centers, are known to emit harmful chemicals like nitrogen oxides and toxic air contaminants, which can contribute to lung issues and cancer.
Linda Hutchins-Knowles, co-founder of the environmental justice group Mothers Out Front Silicon Valley, called for future meetings to provide equal time for environmental and public health groups to present their concerns. These concerns include air and water quality, water use, artificial light, noise, and the impact on wildlife. Hutchins-Knowles questioned the characterization of diesel generators as "low emission," highlighting them as a source of "a lot of air pollution in our community."
Another resident inquired about developers’ commitment to treating leaks from diesel generators on-site, which can release harmful chemicals into the soil and groundwater. Courtney Bell, vice president at Prologis, indicated that this question was outside her immediate technical expertise but confirmed that any equipment malfunctions or repairs would adhere to all standards. She added that water quality monitoring is an area the city is examining, and Prologis would comply with whatever standards are established.
Both developers indicated efforts to keep the community informed. Bell said Prologis has a website for the Silver Creek project, and Koo stated Menlo Digital would soon launch a website for its Charlotte Drive project.
The city's effort to create new data center standards aligns with broader state actions. Governor Gavin Newsom signed a package of bills on September 21 requiring new data centers to undergo an environmental review to detail their impacts. These bills also mandate that developers disclose information about their water usage to local governments.
MJ Sasse, community engagement coordinator at Silicon Valley Youth Climate Action, observed that the town hall underscored the depth of residents' concerns. Sasse noted that close to 100 community members attended, posing thoughtful questions, but many still left with unanswered questions, particularly regarding the heat island effect and water quality, which could impact communities for generations.
