A hulking South San Jose warehouse could be on its way to becoming one of the city's most power-hungry tech addresses, as Prologis moves to recast the site as a data and research hub. Public filings and commercial listings show a plan to convert roughly 300,000 square feet of industrial space into labs and server-ready rooms wrapped around serious on-site electrical and cooling infrastructure.
What the city filings show
The City of San José lists file HA21-006-01 for the 5853 Rue Ferrari project and identifies a power maximum of 49 megawatts for the planned research-and-development conversion, according to the City of San José. An addendum to the project's Mitigated Negative Declaration approved in December 2025 describes adding backup generators, transformers, evaporative cooling chillers and a step‑down power yard to support those loads, as shown in the CEQA filing.
Property is already set up for heavy power
Commercial listings for the site show it totals about 302,843 square feet and advertise 8,000 amps of service already in place, with marketing materials flagging the ability to expand toward hyperscale power levels. Those specs appear on the CBRE listing and in the property's brochure on the Prologis site.
Grid work already under way
Pacific Gas & Electric says it has upgraded the nearby Santa Teresa substation to deliver power to large San Jose customers and built the work to be scalable so more capacity can be added. In a company post, PG&E noted upgrades used to power Equinix’s SV12 campus and said the improvements were designed so additional equipment can be installed to support future customers.
Recent industry reporting indicates the substation's delivery capacity has been pushed further, with regional infrastructure outlets saying the Santa Teresa facility has been expanded to roughly 80 megawatts and that PG&E plans more expansion in the coming years to meet rising demand. That added capacity is a key reason brokers say formerly logistics-oriented South San Jose sites are being pitched to compute and lab users instead of just warehouse tenants.
Who might move in
Prologis has not publicly disclosed any tenant for the Rue Ferrari complex and says potential occupants remain confidential. As first reported by The Mercury News, some commercial-property experts have named Nvidia among companies believed to be interested, though no lease has been announced. Prologis has also notified city planners that it is carrying out tenant improvements aimed at high‑power computing uses.
Why San Jose is racing to land this business
The push to convert logistics buildings to compute hubs fits a larger local strategy to speed and scale transmission and substation work so AI and cloud operators can stay in Silicon Valley. LS Power and other developers have launched multi‑billion‑dollar transmission projects this year intended to strengthen deliveries across Santa Clara County and support the next wave of high‑load facilities, according to recent company announcements.
For now, the Rue Ferrari plan is a permit‑approved conversion without a named occupant, and the next steps are tenant leasing, final tenant‑improvement permits and utility interconnection work before any server halls can be activated. Project records, including permit HA21-006-01 and the county CEQA filing, are public on the city's planning pages and the County CEQA portal for anyone tracking the status.
