PG&E Partners with Smart Wires to Boost Grid Capacity for San Jose Data Centers

On May 28, PG&E Corporation (NYSE:PCG) and Smart Wires announced a collaboration on a project in San Jose, California. The partnership has two primary goals: to enhance grid reliability and increase capacity for data centers in the area.

Most importantly, the project will deploy advanced power flow control technology at PG&E’s Los Esteros electric substation to boost capacity by more than 100 megawatts (MW).

On its part, Smart Wires, a grid-enhancing technology and services provider, will supply its SmartValve devices. The devices will help mitigate thermal overloads, redirect power flow, and increase available capacity at the substation. Completion is expected by late 2025.

According to Joanna Lohkamp, CEO of Smart Wires, this project is a proactive initiative to address the need for a reliable and efficient power grid. “As the demand for data centers skyrockets, ensuring a reliable and efficient grid is more important than ever,” said Lohkamp.

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, this technology provides a near-term solution to ensure reliable power delivery starting in 2025.

SmartValve is a quick and affordable solution for growing electricity demand, helping utilities manage capacity and load efficiently. It can be easily installed, adjusted, or moved to meet changing energy needs and support new power sources. Its modular design allows for future expansion or reconfiguration as grids evolve. Even after the new transmission line launches in 2032, SmartValve will continue to balance power flows and improve network efficiency.

PG&E Corporation (NYSE:PCG) is an energy holding company. It provides electricity and natural gas services, primarily serving millions of customers in northern and central California. The company generates power from a mix of sources and manages its delivery through extensive transmission and distribution networks.

While we acknowledge the potential of PG&E Corporation (NYSE:PCG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PCG and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None.