Data Center Demand Surges in San Jose Amid Multifamily Development Growth

Data center demand is intensifying in Silicon Valley, particularly in San Jose, as the region becomes a critical hub for AI infrastructure expansion. According to The Registry, ECL recently leased an entire 76,000-square-foot building located at 2175 Mission College Boulevard in Santa Clara, underscoring the fierce competition for data center space in the area ³.

This trend is further exemplified by the strategic decision of Rockpoint and Oppidan to convert a planned manufacturing site into a 152,676-square-foot data center in South San Jose. This shift reflects a broader market response to the increasing demand for data center facilities, as noted by The Registry ².

In addition to the growth in data centers, San Jose is also witnessing a notable increase in multifamily development activity. The recent approval of Urban Catalyst’s 645-unit Icon/Echo project on a former Chevron site highlights the ongoing demand for housing in the area ¹. This multifamily project is part of a robust development pipeline that aims to address the housing needs of a growing population in Silicon Valley.

As the demand for both data centers and multifamily housing continues to rise, San Jose is positioning itself as a key player in the commercial real estate landscape, balancing the needs of technological advancement with residential growth.

Sources

1. The Registry (Bay Area) — San Jose Approves Urban Catalyst’s 645-Unit Icon/Echo Project on Former Chevron Site
2. The Registry (Bay Area) — Rockpoint, Oppidan Swap Manufacturing Plans for 152,676 SQFT Data Center in South San Jose
3. The Registry (Bay Area) — ECL Takes Entire 76,000 SQFT Building at 2175 Mission College Boulevard in Santa Clara