The City of San Jose could see an uptick in data centers after signing a first of its kind agreement with PG&E.
The agreement, which was signed on Friday, guarantees speedy power delivery to high energy customers, like data centers.
Data centers are buildings filled with computers — they are often used by tech companies that are processing large amounts of information. With the rise of AI, demand for data centers is increasing significantly.
According to the city and PG&E, data centers have requested nearly two thousand megawatts of energy in the area. The average household uses just 10 megawatts of energy per year. The utility company estimates that this demand from data centers could slightly decrease energy costs for the regular consumer.
