Microsoft has broken ground on a 48-megawatt data center campus in San Jose’s Alviso neighborhood, a project expected to support growing demand for artificial intelligence, cloud computing and digital services.
The Microsoft Alviso data center is described as the company’s first purpose-built, company-owned and operated data center in San Jose. The source information said the groundbreaking took place on a Wednesday, but did not provide a full calendar date or time.
Microsoft Alviso Data Center to Support AI and Cloud Services
Jonathan Noble, Microsoft’s senior director of government affairs, said the facility will strengthen digital systems people use every day, including online transactions, hospitals, medical records and 911 systems.
San Jose Mayor Matt Mahan described data centers as “critical infrastructure” for modern services such as health care, transportation and artificial intelligence, saying the digital backbone is needed to power the modern world.
San Jose Data Center Jobs and Construction Timeline
The project is expected to bring a major construction workforce to the area. John Kane, senior vice president at HITT Contracting, said more than 600 workers will be employed at peak construction.
Mahan said the data center is expected to support more than 100 ongoing jobs once it becomes operational. Kane said construction is expected to be completed in about 18 months, though no opening date was provided in the source information.
Recycled Water Cooling and Renewable Energy Planned
City officials said the Microsoft data center will use 100% recycled water for cooling and renewable energy. They also said the facility will be able to supply power back to the electrical grid during periods of high demand, a feature intended to support grid reliability as regional energy use rises.
The project adds to San Jose’s growing role in Silicon Valley’s data infrastructure economy. As AI tools, cloud platforms and public digital systems require more computing power, data centers are becoming a larger part of the region’s technology and energy planning debate.
