Real estate investment trust Prologis has filed plans to develop a 99-megawatt data center in San Jose, California, on a site that was previously earmarked for an industrial warehouse but never saw construction begin.

Project Details and Site History

The proposed facility would rise three stories and span 516,000 square feet on approximately 15 acres at 5977 Silver Creek Valley Road.

The development would include an on-site substation, and Prologis has committed to covering the costs of transmission upgrades associated with the project. Construction is expected to take around two years, according to reports first published by NBC and Mercury News.

The site carries a layered ownership history. Real estate firm Peery Arrillaga originally held the property before selling it to Duke Realty in 2021 for USD 40.2 million.

Duke Realty subsequently filed plans to build a 281,875 square foot industrial warehouse on the land, receiving the necessary approvals, though construction never commenced.

Prologis then inherited the site when it acquired Duke Realty in 2022 in a deal valued at USD 23 billion.

San Jose as a Growing Focus for Prologis

The Silver Creek Valley Road filing is not Prologis's only data center ambition in San Jose. The company also has plans for a separate campus along Zanker Road, situated near the Los Esteros Energy Center.

That project could deliver up to 400 megawatts of capacity spread across four two-story buildings, representing a significantly larger footprint than the Silver Creek Valley Road proposal.

Together, the two San Jose projects underscore the company's intensifying focus on the California market as it looks to convert its deep portfolio of industrial and logistics real estate into high-demand data center infrastructure.

Prologis's Broader Data Center Ambitions

Prologis is primarily known as a logistics and industrial real estate company, listed on the New York Stock Exchange, but the firm has been aggressively expanding into the data center sector.

The company says it currently has approximately 5.6 gigawatts of power either committed by utilities or in advanced stages of negotiations, and is targeting up to 10 gigawatts of total capacity over the next ten years.

Its current and planned data center developments span a wide geography across the United States, including projects in Illinois, Virginia, Georgia, California, Indiana, Ohio, Pennsylvania, and Texas.

Internationally, the company has developments in Paris, France, and Toronto, Canada. Some of these projects are being pursued in partnership with US data center firm Skybox.

Prologis Eyes Segro Acquisition

Beyond its data center pipeline, Prologis is also currently pursuing an acquisition of Segro, a United Kingdom-based real estate company.

The attempt to acquire Segro adds another dimension to the company's ongoing expansion strategy, potentially broadening its European footprint at a time when demand for digital infrastructure is accelerating across multiple continents.

The San Jose filing comes as data center developers across the industry race to secure power capacity and suitable land in markets where connectivity and energy infrastructure align with the enormous power demands of modern artificial intelligence workloads.

The 99-megawatt capacity proposed for the Silver Creek Valley Road site reflects the scale at which individual facilities are now being planned, compared to the more modest campuses that defined earlier generations of data center construction.