PG&E and Smart Wires Enhance Grid Reliability, Capacity for Data Centers in San Jose
Rhea-AI Summary
PG&E (PCG) and Smart Wires have partnered to enhance grid reliability in San Jose through advanced power flow control (APFC) technology. The project will increase capacity by over 100 megawatts at the Los Esteros electric substation, supporting new data centers in the Alviso community. Smart Wires' SmartValve devices will be installed by late 2025, mitigating thermal overloads by up to 34%.
The solution addresses CAISO's projected load increase of 500 MW in the San Jose area due to data center growth. This technology was chosen over alternatives like reconductoring and energy storage for its cost-effectiveness and rapid deployment capabilities. The system will continue to optimize power distribution even after a new transmission line is completed in 2032.
Positive
- Increases grid capacity by over 100 MW to meet growing data center demand
- Provides immediate solution for power needs starting 2025, ahead of 2032 transmission line completion
- More cost-effective and faster to implement compared to alternatives (reconductoring and energy storage)
- Technology is modular and relocatable, allowing future expansion and reconfiguration
Negative
- Temporary solution until new transmission line completion in 2032
- Only addresses 20% (100 MW) of the projected 500 MW load increase in the area
Insights
PG&E's SmartValve deployment enables 100+ MW capacity increase for data centers, addressing near-term demand while awaiting 2032 transmission upgrades.
This partnership between PG&E and Smart Wires represents a significant technological solution to a pressing infrastructure challenge. The deployment of SmartValve advanced power flow control (APFC) technology at the Los Esteros substation will enable a capacity increase exceeding 100 megawatts – a substantial boost that addresses immediate data center power needs in San Jose's Alviso area.
What makes this particularly noteworthy is the strategic timing. With CAISO projecting up to
The alternatives considered – reconductoring or energy storage – were deemed too costly and time-intensive, highlighting the cost-effectiveness of the APFC approach. Beyond the immediate capacity boost, the modular and relocatable nature of SmartValve provides valuable operational flexibility. Once the permanent transmission infrastructure is completed in 2032, these units can be reconfigured to optimize the expanded network or redeployed elsewhere in PG&E's system.
This deployment demonstrates how utilities can leverage advanced technologies to maximize existing infrastructure rather than solely relying on more capital-intensive new construction. For the San Jose region, this means data center operators gain access to reliable power years earlier than would otherwise be possible, potentially accelerating digital infrastructure development in the area.
Deployment of advanced power flow control technology enables 100+ MW of additional capacity, ensures efficient power distribution for critical infrastructure
SAN JOSE, Calif. and
The project will boost capacity by more than 100 megawatts (MW) at the substation, which is located adjacent to new data centers under development in the Alviso community of San Jose. The installation of Smart Wires' SmartValve APFC devices is expected for completion in late 2025 and will reinforce critical infrastructure to keep these data centers operating.
"As the demand for data centers skyrockets, ensuring a reliable and efficient grid is more important than ever," said Joanna Lohkamp, CEO of Smart Wires. "Our work with PG&E demonstrates the significant impact of our SmartValve technology, dynamically redirecting power from overloaded to underutilized lines. This approach addresses current capacity constraints and optimizes existing infrastructure for the massive energy needs of data centers while also offering a scalable solution for future grid enhancements."
The California Independent System Operator (CAISO) projects a load increase of up to 500 MW in the San Jose area due to data center growth. While a new transmission line is planned for 2032, a near-term solution was needed to ensure reliable power delivery starting in 2025. After evaluating multiple options—including reconductoring and energy storage, both of which proved too costly and slow—CAISO identified APFC as the most effective, reliable, and timely approach. SmartValve devices deliver fast, high-impact upgrades that mitigate thermal overloads by up to
"Working with Smart Wires allows PG&E to efficiently address projected capacity needs while maintaining high reliability for our customers," said Chad Dupuis, Principal Electrical Engineer, PG&E. "This collaboration highlights our commitment to deploying innovative technologies that enhance our grid's flexibility, security, and resilience."
SmartValve provides a fast and cost-effective path to meet increasing electricity demand and allows utilities to dynamically manage capacity and load. This technology can be rapidly deployed, adjusted, or relocated to accommodate shifting energy needs and the integration of new power generation sources. Additionally, SmartValve's modular and relocatable design allows for future expansion or reconfiguration to accommodate evolving grid needs. Once the new transmission line comes online in 2032, SmartValve will continue to enhance its benefits by dynamically balancing power flows across the network.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and
About Smart Wires
Smart Wires is a leading grid enhancing technology and services provider. We help electric utilities unlock capacity and solve their critical grid issues, using our solutions to create a more flexible, reliable and affordable grid. This enables a faster, more cost-efficient path to meet growing electricity demand with clean energy generation, at the lowest cost to consumers. Headquartered in the Research Triangle of
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SOURCE Pacific Gas and Electric Company
FAQ
What is the capacity increase from PG&E's SmartValve installation in San Jose?
When will PG&E complete the SmartValve installation for San Jose data centers?
How much load increase does CAISO project for San Jose due to data centers?
What percentage of thermal overload reduction does PCG's SmartValve technology provide?
When will PG&E's new transmission line in San Jose be completed?
