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Silicon Flash > Blog > Sustainability > Greening the Future: A Look Inside a California Data Center’s Sustainable Model
Sustainability

Greening the Future: A Look Inside a California Data Center’s Sustainable Model

Published July 29, 2025 By Juwan Chacko
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Greening the Future: A Look Inside a California Data Center’s Sustainable Model
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The global environmental impact of AI-powered data centers is significant, but it also affects local communities. Concerns over new data center projects in the US revolve around increased emissions, strained utilities, and extensive land use. Addressing these issues is a new San Jose facility by Arcadis and Terra Ventures, aiming to be one of the most sustainable data centers globally.

The environmental effects of AI-driven data centers are felt both globally and locally. In the United States, objections to new data center developments often stem from worries about heightened emissions, strained utilities, and large-scale land acquisitions. These concerns are at the forefront for engineering design company Arcadis and developer Terra Ventures as they work on launching a cutting-edge data center in San Jose, California, touted as one of the most environmentally friendly in the world.

The project consists of a two-phase plan, featuring a 295,080 sq.ft data center with an attached power structure, a three-story standalone power structure spanning 132,000 sq.ft, and a greenhouse and retail center designed to not only benefit from the community but also give back to it.

In an interview with Arcadis principal and global practice group director Jeffrey Gyzen, DCN discussed the project’s aim to garner community support, its pursuit of a net-zero data center design, and the technological advancements shaping the future of sustainability.

One of the key strategies employed by Arcadis in achieving energy efficiency in their San Jose venture is the use of native direct current (DC) power instead of the conventional alternating current (AC) power typically found in households. By avoiding the conversion process from DC to AC power, which is known for its inefficiencies and wastage, the data center can operate more efficiently, especially in high-density settings characteristic of AI data centers.

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Heat waste is a natural byproduct of energy production, including from fuel cells, as seen in Arcadis’ San Jose initiative. The company plans to harness this waste heat to enhance overall efficiency, aiming to increase it from around 60% to approximately 90%. By employing absorption chillers to generate chilled water from the waste heat, the need for power-intensive air-cooled chillers, which can consume up to 20% of a data center’s total power, is eliminated.

The second phase of the project will leverage waste heat to support on-site greenhouses, offering a local source of fresh produce and reducing the environmental impact of food transportation. This endeavor is part of Arcadis’ broader goal to contribute positively to the local community, with the greenhouses envisioned as not just agricultural facilities but also as gathering spaces and educational venues.

In a recent blog post, Gyzen elaborated on the potential economic benefits of the San Jose data center plan, foreseeing it as a catalyst for regional growth. The self-sustaining energy production and agricultural initiatives are expected to create new opportunities in areas historically reliant on farming or manufacturing. Additionally, by hiring local workers, data centers can spur job creation and community revitalization.

Advocating for a shift towards decentralized power, Gyzen argues that energy is increasingly moving away from traditional utilities due to their inefficiency and unreliability. On-site power generation is proposed as a solution to mitigate downtime commonly associated with data centers connected to the grid, which often face power outages and voltage fluctuations. While nuclear-powered small modular reactors (SMRs) are seen as a promising future option for on-site power generation, natural gas is considered a transitional solution until SMRs become commercially viable.

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Despite the potential benefits of on-site power generation, challenges persist, primarily related to the supply chain. Securing essential components like switches, transformers, and wiring has become increasingly complex, emphasizing the importance of proactive procurement practices to ensure project timelines are met.

TAGGED: California, Centers, data, Future, Greening, Model, sustainable
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