Prologis Inc. Wins Bid for One of the Largest Economic Development Projects in South Bay – San Jose Inside

Project Overview and Strategic Alignment with Sustainable Development Goals

The City of San José has selected Prologis Inc. as the preferred developer for a 159-acre parcel of land owned by the San José-Santa Clara Regional Wastewater Facility. The proposed project involves the development of a data center and advanced manufacturing campus. This initiative is strategically aligned with several United Nations Sustainable Development Goals (SDGs), focusing on economic growth, sustainable infrastructure, and resource management.

Economic and Employment Impact (SDG 8)

The development is projected to make a significant contribution to regional economic vitality, directly supporting SDG 8: Decent Work and Economic Growth. Key economic outcomes include:

• Job Creation: An estimated 6,000 high-quality jobs are expected to be created in the advanced manufacturing and technology sectors.
• Revenue Generation: The project is anticipated to generate approximately $30 million in annual tax revenue, providing a stable income source for public services.
• Economic Stimulation: By attracting and retaining high-tech industries, the campus will drive long-term economic growth and prosperity for the region.

Infrastructure, Innovation, and Sustainable Industry (SDG 9 & SDG 7)

The project’s focus on technology and sustainable infrastructure directly addresses SDG 9: Industry, Innovation, and Infrastructure and SDG 7: Affordable and Clean Energy.

Development Focus

Prologis’s proposal concentrates on developing a hub for data centers and advanced manufacturing, positioning the region at the forefront of the artificial intelligence sector. The plan incorporates flexible building designs and efficient land parcelization to maximize the site’s potential and adapt to California’s regulatory environment.

Energy and Resource Management

Sustainable resource management is a core component of the development plan:

• Clean Energy: The site will utilize an initial 250 megawatts of available clean power, facilitated by a recent implementation agreement between the City of San José and Pacific Gas and Electric Company (PG&E) to ensure reliable power delivery.
• Future Power Capacity: Prologis will partner with PG&E to secure additional energy capacity, supported by two new high-voltage transmission lines expected by 2028, which will add 2,000 megawatts to the local grid.
• Water Recycling: The campus will leverage its proximity to the wastewater facility by utilizing recycled water for its operations, promoting a circular economy.

Urban Development and Community Benefits (SDG 11 & SDG 6)

This initiative transforms underutilized public land into a productive economic asset, contributing to SDG 11: Sustainable Cities and Communities and reinforcing SDG 6: Clean Water and Sanitation.

Land Use and Urban Sustainability

The project represents a strategic redevelopment of buffer lands at the intersection of Highway 237 and Zanker Road. By repurposing this area, the city enhances its economic base without developing open space, a key principle of sustainable urban planning.

Support for Water and Sanitation Infrastructure

Lease revenue generated from the development will be used to offset future operational and maintenance costs for the San José-Santa Clara Regional Wastewater Facility. This provides long-term financial stability for a critical piece of public infrastructure that serves 1.5 million residents. Revenue will be distributed among all partner agencies, ensuring broad community benefit and supporting the affordability and sustainability of sanitation services as outlined in SDG 6.

Governance and Partnership Framework (SDG 17)

The project’s success relies on a multi-stakeholder collaborative model, exemplifying SDG 17: Partnerships for the Goals.

Project Governance and Next Steps

The development will proceed through a structured public approval process:

1. City Council Approval: The San José City Council will review the item on November 18 to authorize an agreement with Prologis, defining project milestones and development terms.
2. Planning and Engagement: The City and Prologis will develop detailed land use, infrastructure, and financing plans while engaging with nearby residents and stakeholders.
3. Environmental and Public Review: The project will undergo a comprehensive environmental review and additional public hearings.
4. Final Agreement: A final development and ground lease agreement will be presented for approval to the City Councils of San José and Santa Clara.

Collaborative Partnerships

This initiative is founded on a public-private partnership between the City of San José and Prologis Inc. It also involves critical collaboration with PG&E for energy infrastructure and coordination among the eight cities and four sanitation districts that partner in the Regional Wastewater Facility.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article highlights issues and initiatives that connect to several Sustainable Development Goals (SDGs). These goals focus on economic prosperity, infrastructure development, sustainable urban planning, clean energy, and water management. The primary SDGs identified are:

   • SDG 6: Clean Water and Sanitation – The project is located on land belonging to a wastewater facility and plans to use recycled water, directly linking to water resource management.
   • SDG 7: Affordable and Clean Energy – The development of data centers, which are energy-intensive, is supported by a plan for “abundant clean power” and new power infrastructure.
   • SDG 8: Decent Work and Economic Growth – A central theme of the article is the creation of jobs, generation of tax revenue, and stimulation of the local economy.
   • SDG 9: Industry, Innovation, and Infrastructure – The project involves transforming unused land into a modern campus for data centers and advanced manufacturing, representing a significant upgrade in industrial infrastructure.
   • SDG 11: Sustainable Cities and Communities – The initiative is a city-led urban development project that repurposes underutilized land to create economic benefits and long-term prosperity for residents in the region.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the details provided, specific targets within the identified SDGs can be pinpointed:

   • Target 6.3: By 2030, improve water quality by…substantially increasing recycling and safe reuse globally. The article explicitly mentions that “recycled water [is] available immediately adjacent” for the new campus.
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology…and promote investment in energy infrastructure and clean energy technology. The agreement between the City of San José and PG&E to guarantee power delivery and develop new high-voltage transmission lines is a direct investment in energy infrastructure.
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The project’s focus on creating a “hub for data centers and advanced manufacturing that power the AI revolution” directly supports technological upgrading and innovation.
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure…to support economic development and human well-being. The transformation of 159 acres of unused land into a high-tech campus is a clear example of developing new, quality infrastructure to drive economic growth.
   • Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management. The project involves a detailed land use plan, environmental review, and community engagement to transform “underutilized land” within the city, reflecting sustainable urban planning.
   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. The article states the development will be an “economic boon for the entire region” with revenue distributed to eight cities and four sanitation districts, demonstrating strong regional development planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   Yes, the article contains several quantitative and qualitative indicators that can be used to measure progress:

   • For SDG 8 (Economic Growth):
     • Number of new jobs created: The article specifies an “estimated 6,000 jobs.”
     • Annual tax revenue generated: The project is projected to generate “$30 million annually in tax revenue.”
   • For SDG 9 (Infrastructure):
     • Area of land developed for industrial use: The article mentions “159 acres of economic development land.”
   • For SDG 7 (Clean Energy):
     • Amount of new power capacity planned/delivered: The article mentions “250 megawatts of available power” for the first phase and “2,000 megawatts from two new high-voltage transmission lines.”
   • For SDG 6 (Clean Water):
     • Availability and use of recycled water: The article states “recycled water available immediately adjacent.”
     • Financial sustainability of water utilities: Progress can be measured by the “lease revenue to help offset future costs to the Regional Wastewater Facility’s ratepayers.”
   • For SDG 11 (Sustainable Cities):
     • Number of partner agencies benefiting from revenue: The article lists eight cities and four sanitation districts as beneficiaries.

Summary of SDGs, Targets, and Indicators

Source: sanjoseinside.com