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

Deployment of advanced power flow control technology enables 100+ MW of additional capacity, ensures efficient power distribution for critical infrastructure

SAN JOSE, Calif. and DURHAM, N.C., May 28, 2025 /PRNewswire/ -- Pacific Gas and Electric Company (PG&E) and Smart Wires today announced a new project to enhance grid reliability and meet energy commitments for data centers connecting in San Jose. By deploying its cutting-edge advanced power flow control (APFC) technology, Smart Wires will help PG&E mitigate thermal overloads, redirect power flow, and increase available capacity at its Los Esteros electric substation.

The project will boost capacity by more than 100 megawatts (MW) at the substation, which is located adjacent to new data centers under development in the Alviso community of San Jose. The installation of Smart Wires' SmartValve APFC devices is expected for completion in late 2025 and will reinforce critical infrastructure to keep these data centers operating.

"As the demand for data centers skyrockets, ensuring a reliable and efficient grid is more important than ever," said Joanna Lohkamp, CEO of Smart Wires. "Our work with PG&E demonstrates the significant impact of our SmartValve technology, dynamically redirecting power from overloaded to underutilized lines. This approach addresses current capacity constraints and optimizes existing infrastructure for the massive energy needs of data centers while also offering a scalable solution for future grid enhancements."

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, a near-term solution was needed to ensure reliable power delivery starting in 2025. After evaluating multiple options—including reconductoring and energy storage, both of which proved too costly and slow—CAISO identified APFC as the most effective, reliable, and timely approach. SmartValve devices deliver fast, high-impact upgrades that mitigate thermal overloads by up to 34%, enabling an additional 100 MW of firm power delivery over the existing lines.

"Working with Smart Wires allows PG&E to efficiently address projected capacity needs while maintaining high reliability for our customers," said Chad Dupuis, Principal Electrical Engineer, PG&E. "This collaboration highlights our commitment to deploying innovative technologies that enhance our grid's flexibility, security, and resilience."

SmartValve provides a fast and cost-effective path to meet increasing electricity demand and allows utilities to dynamically manage capacity and load. This technology can be rapidly deployed, adjusted, or relocated to accommodate shifting energy needs and the integration of new power generation sources. Additionally, SmartValve's modular and relocatable design allows for future expansion or reconfiguration to accommodate evolving grid needs. Once the new transmission line comes online in 2032, SmartValve will continue to enhance its benefits by dynamically balancing power flows across the network.

About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news  

About Smart Wires
Smart Wires is a leading grid enhancing technology and services provider. We help electric utilities unlock capacity and solve their critical grid issues, using our solutions to create a more flexible, reliable and affordable grid. This enables a faster, more cost-efficient path to meet growing electricity demand with clean energy generation, at the lowest cost to consumers. Headquartered in the Research Triangle of North Carolina, Smart Wires has a global workforce of passionate and visionary industry-leading experts across four continents, who work every day to transform grids globally. In collaboration with our customers and partners, we've unlocked nearly 4 gigawatts (GW) capacity—enough to power over 2.5 million homes—supporting the faster integration of clean energy and new demand, enhancing security of supply and delivering cost savings to consumers. To learn more, visit smartwires.com

SOURCE Pacific Gas and Electric Company