Microsoft breaks ground on San Jose data center campus to support AI demand

San Jose City Council member David Cohen, Mayor Matt Mahan, Microsoft Senior Director of Infrastructure Government Affairs Jonathan Noble and Vice Mayor Pam Foley participate in the groundbreaking ceremony for Microsoft’s new data center campus in San Jose, Calif., on Wednesday, June 10, 2026. (Joshua Olawuyi/Bay City News)

Microsoft broke ground Wednesday on a 48-megawatt data center campus in San Jose’s Alviso neighborhood that city leaders say will support growing demand for cloud computing and artificial intelligence.

The project will be Microsoft’s first purpose-built, company-owned and operated data center in San Jose, according to Jonathan Noble, Microsoft’s senior director of government affairs.

John Kane, senior vice president at HITT Contracting, speaks at the groundbreaking ceremony for Microsoft’s 48.5-megawatt data center campus in San Jose, Calif., on Wednesday, June 10, 2026. (Joshua Olawuyi/Bay City News)

John Kane, senior vice president at the HITT Contracting firm working on the project, said the facility will employ more than 600 workers at peak construction. San Jose Mayor Matt Mahan said the data center will support more than 100 ongoing jobs once operational.

Mahan described data centers as “critical infrastructure” needed to support modern services, including healthcare, transportation and artificial intelligence.

“You need this backbone of infrastructure to power the modern world,” Mahan said.

Noble said the facility will support digital systems people rely on every day, including online transactions, hospitals, medical records, and 911 systems.

City officials said the project will use 100% recycled water for cooling and renewable energy, and will be able to supply power back to the electrical grid during periods of high demand.

Kane said construction is expected to be completed in about 18 months.

The post Microsoft breaks ground on San Jose data center campus to support AI demand appeared first on Local News Matters.

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