The Big Picture
PG&E has doubled the capacity of its Santa Teresa Substation in South San José from 40 megawatts to 80 megawatts, adding new infrastructure to support growing electricity demand driven by data centers and artificial intelligence. The expansion was undertaken to meet an additional 40-megawatt power request from data center operator Equinix, and PG&E says the facility was intentionally designed for future growth.
A second expansion phase is already being planned, which would add another transformer within the next three years and further strengthen the area’s ability to support new energy-intensive development.
Why it Matters
The Santa Teresa Substation is more than just a power source for data centers. Substations are the key connection points for new energy infrastructure, making them strategic assets for both economic development and California’s clean energy transition.
While the current expansion supports growing demand from the technology sector, the facility could also play an important role in accommodating future battery energy storage projects. Battery storage systems help improve grid reliability, support renewable energy integration, and provide additional flexibility during periods of peak demand.
As Silicon Valley continues to attract energy-intensive industries, PG&E has an opportunity to demonstrate environmental leadership by positioning Santa Teresa as a preferred location for future battery storage interconnections. Doing so could help balance the region’s growing electricity needs while advancing California’s clean energy goals.