Nvidia is expanding its South Bay footprint with a new advanced technology complex located at 5853 Rue Ferrari in South San Jose. The facility will feature research labs and server racks designed to support massive electricity demands. Construction is currently underway to prepare the site for its projected 2027 opening.
The 49-megawatt surge at Rue Ferrari
Nvidia is constructing a high-power data center at 5853 Rue Ferrari in South San Jose to bolster its technical operations. As reported by the source, the project includes research labs, server racks, and collaborative workspaces designed for high-profile meetings.
The facility is designed for a peak power draw of 49 megawatts, a requirement that necessitates significant utility coordination. According to the report, PG&E is overseeing the installation of a new substation on Santa Teresa Boulevard that can handle up to 80 megawatts, providing Nvidia with the ability to scale its electricity needs rapidly as demand increases.
A Silicon Valley pivot toward GPU-heavy workloads
This expansion follows a broader trend where major Silicon Valley firms are consolidating their data center fotoprints to meet the rising demand for GPU-based workloads. By securing land near its existing 2788 San Tomas Expressway headquarters, Nvidia is positioning itself to leverage local talent and existing cloud service providers.
Industry observers note that the 5853 Rue Ferrari development is already serving as a benchmark for other technology startups. These firms are increasingly seeking similar high-capacity arrangements to support the computational intensity of modern artificial intelligence and automated manufacturing.
Geothermal cooling and seismic-ready infrastructure
To address environmental concerns, the 5853 Rue Ferrari site will utilize chilled water from a nearby geothermal source for its cooling systems. This integration is part of a larger effort to reduce the carbon footprint of massive new data centers within the state.
The physical infrastructure of the building is also being engineered for extreme reliability. Workers are currently installing dual power feeds, backup generators, and a specialized trenching system designed to protect the facility against seismic activity in the region.
Nvidia's unconfirmed 2027 operational rollout
While construction is progressing, several specific details regarding the project's timeline remain unverified. Although Nvidia executives are reportedly conducting site visits to finalize construction plans, the company has not yet released a formal statement regarding the project.
It remains unclear exactly how the company will manage the transition from its planned 25-megawatt pilot phase to the full 49-megawatt capacity . Additionally,the specific details of the upcoming tender process have not been made public, leaving the exact operational ramp-up schedule for late 2027 somewhat speculative.
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