Data center planned for Bay Area office building site leased by Nvidia

Nvidia-Leased San Jose Office Building Slated for Major Data Center Conversion

December 1, 2025

The relentless demand for artificial intelligence computing power is fundamentally reshaping commercial real estate in Silicon Valley, as evidenced by a new proposal to convert a vacant office building leased by chipmaker Nvidia into a large-scale data center. This move underscores the industry's urgent need for physical infrastructure to support the data-intensive AI boom, transforming underutilized office spaces into critical digital hubs.

According to planning documents and sources familiar with the transaction, Nvidia secured a lease for the approximately 97,800-square-foot office and research building located at 300 Holger Way in north San Jose in late 2024. The property, owned by an affiliate of Bay Area real estate firm Menlo Equities which purchased it in 2021, is now the subject of a formal proposal to redevelop it into a data center. Exterior renovations on the building have been observed underway for several months throughout 2025.

The proposed facility is designed as a mission-critical operation. Project plans state, "The data center will be a continuously operating facility," with operations running "24 hours per day, seven days a week, including holidays." To support this, operations technicians and security personnel will be on site in rotating shifts on a 24/7 basis. The site will employ badge-controlled access and comprehensive camera coverage. The planning documents further note, "The operator will maintain communication with neighboring properties and adhere to all municipal codes, particularly regarding noise, lighting, and environmental controls."

Construction on the data center conversion is scheduled to commence in December 2026, with an anticipated completion date of July 2027. While the specific capacity or investment figures were not disclosed in the proposal, the scale of the 97,800-square-foot building indicates a significant addition to the region's data center inventory. Land-use consultant Erik Schoennauer is assisting Menlo Equities with the project. In response to inquiries, Nvidia declined to comment on the property, and Menlo Equities did not name a tenant in its application.

This project is a direct response to the soaring demand for data processing and storage capacity driven by advancements in AI. It represents a growing trend where tech giants and real estate investors are repurposing commercial properties to meet the unique power, cooling, and security requirements of modern computing infrastructure, thereby altering the physical and economic landscape of technology hubs like the San Francisco Bay Area.

Source: siliconvalley

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