PG&E and Smart Wires Enhance Grid Reliability, Capacity for Data Centers in San Jose | PCG Stock News

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May 28, 2025
  • PG&E (PCG, Financial) and Smart Wires collaborate to enhance grid capacity by over 100 MW at Los Esteros substation in San Jose.
  • The SmartValve technology mitigates thermal overloads by up to 34%, providing a critical interim solution until a new transmission line is completed in 2032.
  • Chosen for its cost-effectiveness, the technology addresses part of the projected 500 MW load increase due to data center growth.

Pacific Gas and Electric Company (PCG) and Smart Wires have embarked on a project to fortify grid reliability in San Jose, specifically benefiting burgeoning data centers in the Alviso community. The initiative employs Smart Wires' advanced power flow control (APFC) technology to reinforce the electric capacity at the Los Esteros substation. The deployment of SmartValve devices, expected by late 2025, will raise capacity by over 100 megawatts while reducing thermal overloads by 34%.

The California Independent System Operator (CAISO) has projected a significant increase in load demand—up to 500 MW—owing to the rapid expansion of data centers in the region. This investment comes as an immediate measure while a new transmission line is set for completion by 2032. The decision to implement this technology stemmed from its cost-effectiveness and rapid deployment, in contrast to alternatives like reconductoring and energy storage, which were deemed less feasible in terms of time and cost.

PG&E's partnership with Smart Wires aims to dynamically manage power distribution, optimizing the existing grid infrastructure. These SmartValve devices are modular and can be relocated, offering flexibility for future grid enhancements. Once the new transmission line is operational, these devices will continue to play a critical role in balancing power flows, further supporting the energy needs of data centers and reinforcing grid resilience.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.