City Council - 2025-11-18
Meeting Intelligence Preview
Meeting Summary
San Jose City Council approved Prologis as the preferred developer for a 159-acre data center and advanced manufacturing project at the Regional Wastewater Facility, expected to generate over $30 million annually in tax revenue at full build-out. The council also accepted the Zero Waste Element for Climate Smart San Jose, approved military equipment purchases for SJPD, and received a comprehensive update on SJ26 major sporting events including Super Bowl, NCAA March Madness, and FIFA World Cup preparations.
Key Decisions (5)
Prologis Selected as Developer for 159-Acre RWF Site
Council approved Prologis as preferred developer and Cattellus Deca as backup for 159 acres at San Jose-Santa Clara Regional Wastewater Facility. Project includes approximately 1.6 million sq ft of data centers and 785,000 sq ft of advanced manufacturing. Expected to generate $30+ million annually in tax revenue at full build-out, including $27 million in utility taxes. City manager authorized to negotiate exclusive negotiating agreement.
Microsoft Easements at Regional Wastewater Facility
Council approved master easements agreement and site works agreement with Microsoft Corporation and Valley Water for easements supporting Microsoft's data center project east of RWF. Microsoft will pay $9,270,000 for easements including ingress/egress and underground utilities.
Zero Waste Element Acceptance
Council accepted the Zero Waste Element as part of Climate Smart San Jose, establishing 90% diversion from landfill as the city's zero waste performance measure. Current diversion rate is 62%. Element outlines strategies for waste reduction including composting, recycling, and repair/reuse programs.
SJPD Military Equipment Annual Report and Purchases
Council accepted the 2024 annual military equipment report showing 189 documented events with 246 equipment deployments, 671 UAS (drone) flights, zero complaints, and zero violations. Approved purchase authorization for FY 2025-2026 including drones, bomb detection robotics, and chemical agent deployment systems.
Motel Program Operator Agreements Extension
Council authorized new operators and grant agreements for the motel interim housing program, extending contracts through June 30. PATH added as new operator alongside Home First. City identified $1.2 million in savings through centralized security procurement.
Development Activity (2)
RWF Data Center and Advanced Manufacturing Campus
Approximately 1.6 million sq ft of data centers (4 buildings on 4 parcels) and 785,000 sq ft of advanced manufacturing (4 buildings on 1 parcel). 250 megawatts of power committed from PG&E via Los Esteros substation.
Microsoft Data Center
Data center currently under construction; requires easements for utilities including potable water, recycled water, sanitary sewer, fire water, and storm drains
Market Signals (5)
Commercial Demand
San Jose industrial vacancy rate of 4.1% is lowest of 18 major Western US markets tracked by CBRE, below Western average of 7.4% and national average of 6.6%.
Infrastructure
PG&E has committed 2,000 megawatts of new transmission capacity to San Jose (1,000 MW at RWF, 1,000 MW from South), representing tripling of capacity with existing infrastructure able to serve initial 250 MW without new transmission lines.
Commercial Demand
Data center demand driving premium pricing for industrial uses with sufficient power; 125 data centers broke ground nationwide in first seven months of 2024.
Sentiment
City of Santa Clara and Sunnyvale each facilitated more commercial/industrial construction than San Jose over past decade despite being significantly smaller, contributing to Santa Clara's approximately one-third higher tax revenue per resident.
Housing Demand
District 4 has eight large construction sites active including four multifamily residential projects, with five to six additional projects within one to two years of construction.