Microsoft's Planned San Jose Data Center Could Use as Much Power as 108,000 Homes

Microsoft's Planned San Jose Data Center Could Use as Much Power as 108,000 Homes
Big tech is not only renting data center space in California. It is building its own. Microsoft has a planned data center campus in the Alviso and Milpitas area of San Jose, rated at about 99 megawatts. Putting 99 megawatts in perspective At full power year-round, 99 megawatts adds up to about 867 million kilowatt-hours. At an average of 8,000 kilowatt-hours per home, that is roughly 108,400 homes' worth of electricity, more homes than in many California cities. Data centers typically do not run at full rated capacity every hour, so actual use may be somewhat lower. But they do run around the clock, including during the evening hours when California's grid is most strained.

Part of a much bigger wave
Microsoft's project is one piece of a much larger pipeline. Data center developers have asked PG&E for about 15,000 megawatts of power, with signed agreements reaching about 4,000 megawatts by the end of 2025. Santa Clara County alone has 75 data centers, and data centers already use about 60 percent of the electricity sold by Santa Clara's municipal utility.

What it means for Bay Area homeowners
PG&E customers already pay some of the highest electricity rates in the country. As large new loads connect, the grid needs new lines, substations and generation. State consumer advocates have warned that ratepayers could be left paying for upgrades if projects fall short of expectations. PG&E argues that new large customers can help spread fixed costs. Homeowners can hope that is true, but planning for rising costs is the safer bet.

Choosing your side of the meter
As AI drives up demand, every home will either keep buying every kilowatt-hour from the grid or start producing its own. Homes with solar and batteries power themselves first, use stored energy during expensive evening hours, and send extra electricity back to the grid for compensation. Not everyone likes the idea of supplying a grid that serves big tech. But being a supplier is better than being on the other side of the meter, competing with a 99-megawatt campus for the same power.

Getting there without a purchase
Qualifying homeowners can get solar and battery storage through third-party ownership programs without buying or financing equipment. California's SB 913 also directs regulators to set a value for battery power sent to the grid during high demand, opening the door for battery owners to be compensated.

The takeaway
Microsoft is securing power for its future. Homeowners can secure theirs, with savings that can reach up to 40 percent compared with utility rates, depending on the home and program.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions