Data centers for AI could nearly triple San Jose's energy use. Who foots the bill?

"The county seat of Santa Clara is touting its partnership with Pacific Gas & Electric, claiming the city is "the West Coast's premier destination for data center development." The investor-owned utility now estimates it has enough capacity in its planning pipeline to push the city's electricity use to almost three times its current peak. Those plans are forcing major grid upgrades, PG&E and city officials say, while raising questions about who pays for them and whether the state can keep the power clean."

"They included a local official working with PG&E on the city's data-center build-out, a tech advocate urging California to seize the economic moment, a Stanford energy expert pressing for a more modernized grid and a utility watchdog skeptical of AI's promised benefits. Their discussion centered on how quickly California should move to accommodate new demand, what information the public should be entitled to"

Santa Clara is partnering with Pacific Gas & Electric and positioning itself as the West Coast's premier destination for data center development. PG&E estimates its planning pipeline could push the city's electricity use to almost three times its current peak. Those plans are forcing major grid upgrades and raising questions about who pays for them and whether the state can keep the power clean. Stakeholders disagree over how quickly to accommodate new demand, what public information should be available and how to prevent customers from shouldering costs for infrastructure that may never be used. Legislative proposals to more strictly regulate data center development failed this year, and state agencies are expected to continue discussions. The AI surge complicates forecasting because companies can propose large facilities without committing, computing demands change rapidly and cooling needs vary across the state.

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