Please ensure Javascript is enabled for purposes of website accessibility

Israeli Officials to Hold Ceasefire Talks in Washington Amid Military Escalation in Gaza

58 minutes ago

US Senate Republicans Struggling to Unite on Trump’s $3.3 Trillion Tax-Cut Bill

1 hour ago

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

17 hours ago

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

17 hours ago

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

19 hours ago

Will Valadao Spoil Trump’s Plan for July 4th ‘Big Beautiful Bill’ Signing?

20 hours ago

Shaver Lake and Reedley 4th of July Shows Are Wednesday. Who Else Is Celebrating?

23 hours ago
PG&E Sees Surge in AI Data Center Interest With Fresno Area Emerging as New Hotspot
Reuters logo
By Reuters
Published 1 month ago on
May 27, 2025

Residents walk by power grid towers at Bair Island State Marine Park in Redwood City, California, United States, January 26, 2022. REUTERS/Carlos Barria/File Photo

Share

Getting your Trinity Audio player ready...

(Reuters) – PG&E, California’s largest electric utility, has seen a jump of more than 40% this year in requests for power supplies from data center developers across the northern part of the state, an executive with the company told Reuters on Tuesday.

California’s Silicon Valley is one of the world’s largest and oldest data center markets, but analysts have widely said that pricey land and costly electricity will limit the state’s ability to capitalize on the current wave of demand for artificial intelligence data centers, which is concentrated in the middle of the country.

PG&E, however, said it is seeing signs that the state still has room to run.

PG&E Launches Cluster Study

Last month, PG&E, which delivers power and natural gas to about 16 million people in northern and central California, including Silicon Valley, launched a process for data center developers interested in connecting to the utility’s system.

The so-called cluster study yielded 4.1 gigawatts of interest, on top of the 8.7 gigawatts announced during the company’s most recent earnings call in late April, said Mike Medeiros, PG&E’s vice president of South Bay Delivery.

Not only did the pipeline of prospective data centers being built within PG&E grow, but the size of the projects has also jumped since the previous year’s cluster study, Medeiros said.

Last year, the typical data center wanting to power up through PG&E had 50 to 100 megawatts in capacity. Current proposals are for projects of 500 megawatts to as much as 1,000 megawatts.

“We’re seeing quite a change in what customers are looking for, and some of that might be based on land availability or just scale and the efficiencies of building bigger,” Medeiros said.

Unlike earlier data centers, those for AI are used primarily for training the large language models, like ChatGPT, and can be further away from city centers.

Fresno, Contra Costa County Propose Inland Developments

While California’s older data centers are in Silicon Valley in the western part of the state, many of the new proposed developments are inland, including in Contra Costa County and the Fresno area.

Not all of the data centers making inquiries are expected to ultimately connect to PG&E. Some of the top challenges in data center expansion for the utility include meeting the tight timelines by developers and operators and backlogs in the equipment needed to build out the grid.

(Reporting by Laila Kearney; Editing by Richard Chang)

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

DON'T MISS

Fresno Woman Killed in Head-On Collision, CHP Investigating

DON'T MISS

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

DON'T MISS

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

DON'T MISS

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

DON'T MISS

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

DON'T MISS

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

DON'T MISS

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

DON'T MISS

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

DON'T MISS

Labor Icon Huerta Breaks Ground on Fresno Park Bearing Her Name

UP NEXT

Fresno Woman Killed in Head-On Collision, CHP Investigating

UP NEXT

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

UP NEXT

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

UP NEXT

Bryan Kohberger Pleads Guilty in Murders of Four Idaho Students, ABC News Reports

UP NEXT

Wildfire Near Lake Madera Country Estates Burns 12 Acres, Now 100% Contained

UP NEXT

Fresno County CHP Arrest Two in Interstate 5 Drug, Gun, and Counterfeit Money Bust

UP NEXT

California Seizes Over 600,000 Pounds of Illegal Fireworks. Newsom Calls for Safe Celebrations

UP NEXT

Where Trade Talks Stand With Major US Partners Ahead of Tariffs-Hike Deadline

UP NEXT

Labor Icon Huerta Breaks Ground on Fresno Park Bearing Her Name

UP NEXT

DOJ Announces Arrest, Indictments in North Korean IT Worker Scheme

France Shuts Schools, Italy Limits Outdoor Work as Heatwave Grips Europe

19 minutes ago

Powell Reiterates Fed Will Wait for More Data Before Cutting Rates

26 minutes ago

Visalia Police Investigate Morning Shooting Outside Bethlehem Center

40 minutes ago

Israeli Officials to Hold Ceasefire Talks in Washington Amid Military Escalation in Gaza

58 minutes ago

US Senate Republicans Struggling to Unite on Trump’s $3.3 Trillion Tax-Cut Bill

1 hour ago

Trump Escalates Feud With Musk, Threatens Tesla, SpaceX Support

1 hour ago

Clovis Police Seek Public’s Help in Finding Missing 82-Year-Old Woman

16 hours ago

Fresno Woman Killed in Head-On Collision, CHP Investigating

16 hours ago

Musk Vows to Punish Lawmakers Who Back Trump’s Spending Bill

17 hours ago

Fresno Man Sentenced to Nearly 6 Years for $4.2 Million Tech Startup Fraud

17 hours ago

Musk Promises a New Political Party if the GOP Bill Passes

The country’s biggest Republican donor called Monday for the formation of a new political party and suggested he would back primary challeng...

55 seconds ago

Tesla CEO Elon Musk greets U.S. President Donald Trump as they attend the NCAA men's wrestling championships in Philadelphia, Pennsylvania, U.S., March 22, 2025. (REUTERS/Nathan Howard/File Photo)
55 seconds ago

Musk Promises a New Political Party if the GOP Bill Passes

U.S. dollar banknotes are seen in this illustration taken March 19, 2025. (Reuters/Dado Ruvic/Illustration)
17 minutes ago

Dollar Gains Ground Against Major Peers After Better-Than-Expected US Jobs Data

18 minutes ago

A Path Forward on Immigration Reform That Strengthens America

A tourist cools off in the Trocadero Fountain next to the Eiffel Tower as an early summer heatwave hits Paris, France, July 1, 2025. (Reuters/Tom Nicholson)
19 minutes ago

France Shuts Schools, Italy Limits Outdoor Work as Heatwave Grips Europe

Federal Reserve Chair Jerome Powell testifies before a House Financial Services Committee hearing on "The Semiannual Monetary Policy Report to the Congress," on Capitol Hill in Washington, D.C., U.S., June 24, 2025. (Reuters File)
26 minutes ago

Powell Reiterates Fed Will Wait for More Data Before Cutting Rates

A man was shot Tuesday, July 1, 2025, morning outside the Bethlehem Center in Visalia, and police are investigating the incident. (Visalia PD)
40 minutes ago

Visalia Police Investigate Morning Shooting Outside Bethlehem Center

Palestinians inspect the site of an Israeli strike on a house that took place on Monday, in Zawayda in the central Gaza Strip, July 1, 2025. (Reuters/Ramadan Abed)
58 minutes ago

Israeli Officials to Hold Ceasefire Talks in Washington Amid Military Escalation in Gaza

Documents tracking Senate votes are seen at the U.S. Capitol as Republican lawmakers struggle to pass U.S. President Donald Trump's sweeping spending and tax bill, on Capitol Hill in Washington, D.C., U.S., July 1, 2025. (Reuters/Nathan Howard)
1 hour ago

US Senate Republicans Struggling to Unite on Trump’s $3.3 Trillion Tax-Cut Bill

Help continue the work that gets you the news that matters most.

Search

Send this to a friend