This Month's Latest Tech News in San Jose, CA - Thursday July 31st 2025 Edition

San José is cementing its role as a leading hub for artificial intelligence and technology through a landmark Implementation Agreement with Pacific Gas and Electric Company (PG&E), positioning the city as the West Coast's premier data center destination.

This historic agreement guarantees delivery of up to 2,000 megawatts of new power capacity by 2028, supporting the soaring demand for data center infrastructure driven by AI and cloud computing.

With commitments to infrastructure upgrades including two high-voltage transmission lines and advanced power flow technology, San José is ensuring reliable, efficient, and clean energy access critical for tech growth.

The city benefits economically from data center development, with individual projects projected to contribute $3.4 to $6.8 million annually in tax revenues, fueling public services and workforce growth.

Mayor Matt Mahan emphasized,

“San José isn't just the heart of Silicon Valley - we're the launchpad for what's next.”

Furthermore, San José's civic sandbox approach actively supports early-stage AI companies through grants and innovation programs, enriching the local AI ecosystem.

With its unique blend of abundant renewable energy options, proximity to Fortune 500 tech headquarters, and a highly educated workforce, San José's strategic partnerships and forward-thinking policies solidify its leadership in the AI revolution.

Learn more about San José's Implementation Agreement with PG&E, explore detailed insights in the RCR Wireless analysis on data center infrastructure in San José, and discover the city's innovative AI incentive programs at GovTech's coverage of San José's AI civic sandbox initiatives.

San José has forged a groundbreaking partnership with Pacific Gas and Electric Company (PG&E) to solidify its position as the West Coast's premier data center hub, crucial for supporting the burgeoning artificial intelligence (AI) sector.

This historic Implementation Agreement guarantees speed and certainty in power delivery for large energy customers, responding to nearly 2,000 megawatts of new demand from data centers alone, enough to power approximately 1.5 million homes by 2028.

Key infrastructure upgrades include the construction of two high-voltage transmission lines and advanced power flow controls, enhancing grid capacity and reliability.

The partnership also places clear performance milestones on PG&E and includes a $2.6 billion investment in local grid improvements. San José offers strategic advantages such as proximity to over 40 Fortune 500 tech headquarters, a strong presence of top global cloud providers, access to 100% renewable energy options, and competitively priced land, all fostering an attractive environment for data center growth.

Economically, these developments are projected to generate millions in annual tax revenue per data center, funding essential city services, while PG&E expects the influx of new loads to potentially lower overall customer electricity bills by 1–2%.

Mayor Matt Mahan emphasized the city's readiness to lead the AI revolution with this deal, stating,

“The message is clear: San José is ready to deliver.”

For further details on this landmark agreement and its implications, explore the in-depth coverage by RCR Wireless News on San José's data center strategy, the official City of San José press release, and the comprehensive report by KQED on the San José-PG&E data center deal.

On April 2, 2025, Plug and Play officially launched its AI Center of Excellence in downtown San Jose, establishing a pivotal hub for AI innovation at 2 West Santa Clara Street.

This initiative, supported by key partners including the City of San Jose, PG&E, and San Jose State University (SJSU), aims to foster a vibrant startup ecosystem by housing up to 40 AI startups, potentially generating hundreds of new tech jobs.

The center integrates an incubator, exhibition halls, and a learning facility designed to bridge entrepreneurship with cutting-edge AI research, leveraging SJSU's Lucas College commitment to human-centered AI education.

PG&E's involvement includes infrastructure upgrades to meet the growing energy demands of this tech cluster, reflecting a strategic collaboration to power San Jose's AI-driven future.

Mayor Matt Mahan highlighted the vision, stating,

“Our vision is to make San Jose the AI capital,”

while Plug and Play CEO Saeed Amidi emphasized the center's role as a global platform connecting startups, corporations, and academia to accelerate AI adoption.

The launch event also underscored educational initiatives such as the Spartan Spark Academy Innovation Bootcamp aimed at equipping local students with skills to create inclusive, AI-powered ventures aligned with sustainable development goals.

For detailed insights into the center's launch, the supportive ecosystem, and ongoing initiatives, visit Plug and Play Sparks New AI Partnership in San José, Plug and Play to Launch AI Center of Excellence in San Jose, and Inside San Jose's Push to Become the 'Capital of AI'.

Pacific Gas & Electric Company (PG&E) and real estate developer Westbank are collaborating on an ambitious net-zero community in downtown San Jose, integrating three data centers with up to 4,000 residential units to create a sustainable urban environment.

This project repurposes excess heat from the AI-driven data centers through a district energy system to efficiently heat and cool neighboring buildings, thereby reducing energy bills and supporting San Jose's climate goals.

PG&E has commenced infrastructure upgrades, including rebuilding key substations and enhancing transmission to provide approximately 200 megawatts of clean energy to power these facilities, with the first data center expected operational by late 2027.

The initiative addresses the surging demand for data center capacity while simultaneously tackling the local housing crisis by pairing high-revenue data centers with new residential developments.

Mayor Matt Mahan highlighted the innovation in this partnership, stating it “will allow us to harness data center demand to build much-needed workforce housing and ensure it is powered by excess heat from the data centers.” Westbank CEO Ian Gillespie emphasized the project's global leadership potential in sustainable urban design, calling it “a more inspiring and sustainable community.” The San Jose City Council approved advancing the first two data centers in April 2025, and PG&E's $2.6 billion investment in infrastructure improvements aims to guarantee reliable power delivery to this and other major projects, further solidifying San Jose as a West Coast tech and AI hub.

For more details, visit PG&E's energy infrastructure upgrades press release, the local District Energy blog on PG&E upgrades, and San Jose's municipal deal coverage at KQED News about San Jose and PG&E partnership.

San Jose's office market is experiencing a robust recovery, largely driven by increased leasing activity from AI companies. In 2024, AI and machine learning firms accounted for over 50% of tech industry leases in Silicon Valley, a significant jump from 10% in 2023, signaling strong growth in demand for commercial office space (Silicon Valley Report on AI and office market growth).

Notably, the One Santana West building in the Santana Row neighborhood achieved 80% occupancy after leasing 60,400 square feet to AI companies Etched, specializing in AI semiconductor chips, and Securiti.ai, focused on AI-driven data security.

This shift from a single-tenant model to multi-tenant leasing attracted a diverse tenant mix including PwC, Couchbase, and BetterHelp (CRE Daily article on AI-driven Silicon Valley office leasing).

Additionally, Astera Labs, a connectivity platform provider for AI infrastructure, is tripling its San Jose headquarters footprint by leasing 154,000 square feet across three buildings, underscoring the ongoing expansion of AI firms in the region (GlobeSt.com coverage of AI office lease expansion).

This surge in AI-related leases is contributing to decreased vacancy rates and rising asking rents, fueling cautious optimism about continued office market growth alongside the broader Silicon Valley recovery.

GovernmentGPT, a Mountain View-based company, has sparked significant privacy and ethical concerns after filing 90 California Public Records Act requests with multiple Bay Area cities - including San Jose, Santa Clara, Mountain View, and Milpitas - to obtain residents' emails from 2020 to 2023 for training an AI tool that summarizes public comments.

The initiative, led by CEO Raj Abhyanker and involving former Milpitas mayor Rich Tran, aims to create a “ChatGPT-like AI interface” to enhance government responsiveness but has faced backlash from experts like SJSU professor Ahmed Banafa and Santa Clara University's Brian Green, who worry about consent, data monetization, and misuse beyond the original intent of the Public Records Act.

Santa Clara Councilmember Kevin Park also cautioned about AI inaccuracy risks and the absence of clear regulations. As public records requests surge nationwide - sometimes overwhelming government agencies and prompting states to enact protections - GovernmentGPT's approach has ignited debate on balancing transparency, innovation, and citizens' privacy rights.

For a detailed investigation into these requests impacting local governments, see the full report by Local News Matters on Silicon Valley Records Requests; insights on the challenges election officials face with burdensome records requests are available in the Election Innovation Research brief on public records requests; and further context on privacy concerns about government data collection and use is discussed by the VICE investigation into flaws in the public records system.

Google has significantly enhanced its Search experience by integrating its most advanced AI model, Gemini 2.5 Pro, into the new AI Mode, available to Google AI Pro and AI Ultra subscribers in the U.S. This mode offers advanced reasoning, coding, math problem-solving, and a novel Deep Search feature that autonomously performs extensive research across hundreds of sources to generate fully-cited, comprehensive reports in minutes - ideal for complex inquiries like financial analysis or purchasing a home.

Complementing these improvements is the rollout of an AI-powered business-calling feature that autonomously contacts local businesses to gather pricing and availability details, exemplified by its use in searches for services such as pet grooming, thereby saving users time while allowing businesses to manage these interactions through their profiles.

Additionally, Google is pioneering the Android XR platform powered by the Gemini model to advance smart glasses technology, collaborating with eyewear brands like Gentle Monster and Warby Parker to create stylish, hands-free AI assistants that provide real-time contextual help - such as messaging, navigation, live translation, and appointment scheduling - through discreet in-lens displays and integrated cameras and microphones.

This integration of cutting-edge AI into both Search and wearable devices underscores Google's commitment to making AI-assisted interactions seamless and natural.

Learn more about the AI-powered business calling feature, the Gemini 2.5 Pro and Deep Search capabilities, and the innovative Android XR glasses platform that bring AI assistance closer to everyday users.

At the forefront of AI hardware innovation, Nvidia is significantly expanding its AI GPU production in San Jose to meet soaring global demand amid evolving export controls.

The company recently placed a substantial order for 300,000 H20 AI chips with Taiwan Semiconductor Manufacturing Co. (TSMC), signaling a strategic move to resume sales in China following a relaxation of prior U.S. export restrictions.

These H20 chips are specifically engineered to comply with export regulations while harnessing high performance for AI inference tasks. This order supplements an existing stockpile of 600,000 to 700,000 H20 chips driven by robust demand in the Chinese market.

Concurrently, Nvidia's latest GTC 2025 conference in San Jose highlighted the production ramp-up of the Blackwell Ultra platform, which delivers up to 40 times the performance of its predecessor, Hopper, and supports premium AI services for cloud providers and enterprise clients.

CEO Jensen Huang emphasized a trillion-dollar computing inflection point fueled by reasoning and agentic AI, underscoring the company's pivotal role in scaling AI infrastructure worldwide.

Nvidia's product roadmap includes new GPUs, such as the Vera Rubin family expected in the second half of 2026, further advancing AI computing capabilities. Additionally, Nvidia is investing heavily in software ecosystems and developer tools to facilitate widespread enterprise adoption of AI technologies.

Despite challenges from export controls and the growing need for sustainable, energy-efficient data centers, Nvidia is solidifying San Jose's position as a global AI manufacturing and innovation hub.

For further details, explore the Investopedia report on Nvidia's chip orders, the comprehensive Nvidia GTC 2025 conference overview, and the CNBC coverage of Nvidia's new AI chips.

San Jose is rapidly emerging as a critical hub for AI-driven data center development with two new large data centers planned in North San Jose, specifically near 350 West Trimble Road.

Developed by LBA Realty and Microsoft, these facilities are designed to meet the surging computational demands driven by artificial intelligence and machine learning growth.

The first data center will occupy 206,300 square feet on 18.1 acres and include a private electrical substation, while the second will cover 208,000 square feet on 10.3 acres, necessitating upgrades to the nearby PG&E power switching station.

This development aligns with PG&E's broader infrastructure investments, including 18 new data center projects across California and enhancements like Smart Wires' advanced power flow control technology to boost substation capacity by over 100 MW by late 2025.

PG&E's collaboration with San Jose has resulted in adding 2,000 MW of new transmission capacity by 2028, ensuring reliable and timely power delivery to support the tech expansion.

These projects are not only pivotal for sustaining the region's AI sector growth but also expected to contribute millions annually in tax revenue while creating hundreds of construction and permanent jobs.

Microsoft's commitment includes $65 million for local infrastructure upgrades, emphasizing the symbiotic relationship between tech giants and city planning to foster Silicon Valley's future.

For deeper insights into San Jose's data center surge, explore the details in the PG&E and San Jose data center development report, the Mercury News coverage on North San Jose tech build plans, and the Silicon Valley article on Microsoft's approved North San Jose data center project.

Bay Area innovators are making significant strides in applying AI to healthcare and aviation safety, demonstrating the region's leadership in cutting-edge technology.

In aviation, 18-year-old Mizan Rupan-Tompkins, a Bay Area teen pilot, developed Stratus, a real-time autonomous co-pilot system that uses AI to monitor pilot communications at low-resourced or non-towered airports - sites that comprise 85% of U.S. airports - to flag potential safety issues before they become hazardous.

Expert pilots praise its potential to improve situational awareness where air traffic control is limited or absent. Meanwhile, at UC Berkeley, student Ashmita Kumar founded Code Blue, an AI startup focused on early stroke detection, employing everyday smart devices like phones and computers to detect early stroke signs through subtle speech and facial analysis.

The system alerts users and emergency services promptly, aiming to reduce stroke-related casualties and improve outcomes. Code Blue is in pilot testing with UCSF physicians and is pursuing FDA approval, spotlighting AI's growing role in personalized healthcare.

These innovations underscore how Bay Area developers harness AI to address critical safety challenges in both air travel and medical emergencies, showcasing technology's promise to save lives and transform industries.

In a decisive move that underscores California's continued leadership in AI governance, the U.S. Senate overwhelmingly voted 99-1 on July 1, 2025, to remove a proposed ten-year federal moratorium on state AI regulations from the budget reconciliation bill, known as the One Big Beautiful Bill Act (H.R. 1).

This action, which President Trump signed into law on July 4, preserves states' authority to enforce their own AI laws, enabling progressive AI legislation - such as California's AB 2013 requiring transparency in AI training data and other high-risk AI oversight laws - to proceed without federal interference.

The moratorium had faced broad bipartisan opposition, including from 40 state attorneys general and 17 Republican governors, who raised concerns about its impact on consumer protection and child safety.

As Senator Maria Cantwell stated, the decision protects consumers and allows states to address AI-powered harms while the federal government considers national frameworks.

Businesses must now prepare for a complex regulatory landscape where state and local AI rules govern critical areas such as employment, housing, and healthcare.

For a detailed analysis of this legislative development, see the comprehensive reports by Inside Privacy's detailed report on AI regulation, the Senate Commerce Committee's coverage on the Senate vote to strike the AI moratorium, and Goodwin Procter's overview on the moratorium's removal and its implications for state AI regulation in their Federal AI Moratorium Dies on the Vine article.

San Jose's strategic initiative to cement its position as the West Coast's AI and technology hub is evident through its robust partnerships, infrastructure investments, and innovative workforce development.

The city's landmark agreement with PG&E to introduce 2,000 megawatts of new transmission capacity guarantees power delivery certainty, fueling the growth of data centers vital for AI workloads, as reported by RCR Wireless.

Concurrently, San Jose fosters a thriving AI ecosystem by supporting startups via incentive programs and pioneering AI-trained municipal employees who develop custom AI assistants to improve public services, exemplifying a collaborative "civic sandbox" approach detailed in Government Technology.

At the federal level, initiatives like the Trump Administration's AI acceleration plan emphasize national competitiveness and streamlined regulation, creating a favorable environment for San Jose's innovative momentum, as outlined in San José Spotlight.

This comprehensive framework of infrastructure, policy, and workforce readiness positions San Jose not only as a leader in AI innovation but also as a model for responsible, equitable growth.

For individuals looking to join this dynamic sector, educational pathways such as Nucamp's AI Essentials for Work or Solo AI Tech Entrepreneur bootcamps provide accessible skill-building opportunities to thrive in AI-powered careers and entrepreneurial ventures.