REPORT TO COUNCIL
SUBJECT
Title
Action on a Substation Agreement with CoreSite Real Estate SV9, L.P. for Stender Way Junction Substation, Related Budget Amendment, Addition of 4.0 Full Time Positions and Delegation of Authority to the Office of the City Manager to Negotiate and Execute Substation Agreements for Silicon Valley Power (SVP) with the following customers:
1. 651 Walsh Partners, LLC for Laurelwood Junction Substation;
2. 1220 Santa Clara Propco, LLC for Memorex Junction Substation; and
3. C-1 Santa Clara LLC, for Martin Avenue Junction Substation Agreement
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
CoreSite Real Estate SV9, L.P. (CoreSite) is currently constructing a new data center at 2905 Stender Way. The City Council approved the rezoning of the project on June 15, 2021. CoreSite anticipates that the maximum energy demand for its data center will be 49 megavolt-amps (MVA) and has requested the City's Electric Utility, Silicon Valley Power (SVP), to provide the required 60kV electric service to the site through a 60kV single customer substation (Stender Way Junction).
Three additional data center projects with 651 Walsh Partners, LLC, 1220 Santa Clara Propco, LLC, and C-1 Santa Clara LLC have completed environmental review, City land use approval, and some are at various stages of construction with active building permits.
DISCUSSION
Under the proposed Stender Way Junction Substation Agreement, CoreSite will construct, at its own expense, the Stender Way Junction Substation with a capacity of 49 megavolt-amps (MVA) to serve its data center. Costs incurred by SVP related to the design, procurement, construction, inspection, and testing associated with Stender Way Junction will be paid in full by CoreSite as Developer Contributions. Once completed, the Stender Way Junction will be owned, operated, and maintained by SVP at SVP's sole cost and expense with costs recovered through el...
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