The center is slated for a 154-acre North San Jose parcel near the intersection of Highway 237 and Zanker Road near the Milpitas city line. It would consist of between 10 and 20 buildings, each ranging from 50,000 sf to 200,000 sf. The project was originally scheduled to go before the Energy Commission today but was delayed at the request of DataPort's attorney, according to Commission spokeswoman Suzanne Garfield.

Officially launched in January 2000 by president John Sedgwick and Kimball Small of Kimball Small Properties, DataPort has had a strategic relationship since late 1999 with Calpine Corp. that in November saw its proposed Metcalf Energy Center in South San Jose denied by the City Council. If DataPort's development is approved, its senior vice president of business development Lewis Shadle says Calpine will build and manage a dedicated 21-acre, 50-megawatt energy facility for the data center.

"It's a very close, long-term strategic relationship," Shadle tells GlobeSt, adding that Calpine founder and president Peter Cartwright sits on US DataPort's board of directors.

Beleaguered power company Pacific Gas and Electric owns a tract next to the proposed data-center campus and is in the process of building a new substation there, according to Shadle. When Calpine's energy facility is up and running, says Shadle, "we will begin to offer power not only to the campus, but also to the PG&E substation for sale on the (energy) grid. So we will be producing power for both our own use, which is the primary purpose, and also surplus power will be sold to PG&E."

At issue during the Feb. 7 Energy Commission hearing will be the proposed Calpine deal. DataPort also seeks to allow a majority of tenants to install a series of smaller diesel-powered generators "to ensure the reliability of power taken from the PG&E grid," according to DataPort's petition filed with the Energy Commission.

Shadle says he has no concerns about the project receiving approval next month."I honestly do not (have worries)," he says. "What we are doing on the generation side is dedicated for the campus, dedicated for the use of the data centers and the campus."

DataPort is building a similar facility in Gainesville, VA The 188-acre center, with an estimated price of $1 billion, is described as the largest center of its type in the nation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.