Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Grid Expansion Data Centers topic
No spam. Unsubscribe anytime.
Silicon Valley Power plans rapid grid expansion as data-center demand pushes load toward 1,300 MW
Summary
Acting SVP director Nico Prokos told customers that Silicon Valley Power is planning to expand capacity toward a 1,300-megawatt planning target to accommodate heavy industrial load growth—largely driven by data centers—and urged customer participation at an upcoming May 20 joint council/planning-board meeting on data-center policy.
Silicon Valley Power (SVP) said Tuesday that it is planning a rapid expansion of its electric system to accommodate sharp load growth driven largely by data-center development. Acting Chief Electric Utility Officer Nico Prokos told attendees at SVP’s State of the Utility 2025 that the utility is planning for a 1,300-megawatt system operating target and expects much of that growth to arrive by about 2028.
Prokos said the city is already seeing data centers “show up and a lot more energy use,” and asked customers and stakeholders to participate in an upcoming joint City Council and Planning Board meeting scheduled for May 20 to discuss data-center policy. “We currently have…approximately 55 data centers,” Prokos said, adding that the utility is building toward a 1,300-megawatt planning assumption and will evaluate operational experience after 2028.
Why it matters: SVP’s load profile is unusually industrial-heavy—Prokos said industrial customers account for about 92% of sales—so decisions about data-center siting and power allocation have a direct effect on the city’s system design, capital program and rate outlook. SVP’s five‑year capital plan and near-term transmission projects are being sized to move much more capacity into the city and to keep local rates competitive for large customers.
What SVP told customers: Prokos emphasized external transmission projects and internal upgrades. He said SVP is participating in the California Independent System Operator (ISO) planning process and supporting proposed transmission projects that SVP believes will bring additional megawatts into the city. “We’re going to be submitting comments in support of these projects shortly,” he said. Prokos also highlighted internal projects: rebuilding receiving substations, a new transmission connection between receiving stations, reconductoring lines and a 50-megawatt battery-energy-storage project in the city limits.
Private-sector perspective: Ahmad Thomas, CEO of the Silicon Valley Leadership Group, told the audience that data centers are a linchpin for regional competitiveness in AI and related industries. “You all are powering it. You’re powering it with 55 data centers,” Thomas said, stressing that infrastructure and power availability shape where firms locate and how much value the region captures from emerging technologies.
Constraints and next steps: Prokos said transmission projects typically take years and that many proposed projects can fail to develop, but he described recent ISO planning changes—including conversion of an HVDC proposal to AC—as evidence of faster-than-usual movement in the region. He urged stakeholders to engage in the ISO and local planning processes. Prokos also said SVP is conducting a staffing study and expects to add personnel to manage the expansion and that the utility will finance major work in part through bond issuances.
What SVP did not say: No binding allocation method for future, unassigned capacity was announced. On how the utility will allocate any unused or returned capacity, Prokos said the issue is “complicated” and under active discussion; he gave no timetable or formula for reallocation.
Looking ahead: SVP is asking customers and local stakeholders to attend the May 20 joint council/Planning Board discussion on data-center policy and said it will continue to file ISO comments and pursue internal upgrades to prepare for the planned growth.
