In a significant development for energy infrastructure, Pacific Gas and Electric Company (PG&E) has partnered with Smart Wires to launch a new project aimed at bolstering grid reliability and addressing energy demands from local data centers. Announced on Wednesday, this initiative will see the deployment of advanced power flow control (APFC) technology, specifically Smart Wires’ SmartValve devices, at PG&E’s Los Esteros electric substation.
The project is set to increase the substation’s capacity by over 100 megawatts (MW), a crucial upgrade as new data centers continue to rise in the Alviso community of San Jose. The installation is expected to be finalized by late 2025, reinforcing the electrical infrastructure necessary to support these high-demand facilities.
“The increasing demand for data centers necessitates a reliable and efficient power grid more than ever before,” stated Joanna Lohkamp, CEO of Smart Wires. “Our collaboration with PG&E showcases the tangible benefits of our SmartValve technology, which dynamically shifts power from overloaded lines to those that are underutilized. This addresses immediate capacity challenges and optimizes the existing grid infrastructure to meet the extensive energy requirements of data centers while providing a scalable solution for future enhancements.”
The California Independent System Operator (CAISO) forecasts that the San Jose area will see a load increase of up to 500 MW due to data center expansion. While a new transmission line is scheduled for completion in 2032, an urgent solution was necessary to ensure consistent power delivery starting in 2025. CAISO explored various options, including reconductoring and energy storage; however, these alternatives proved too expensive and time-consuming. Ultimately, CAISO determined that APFC technology was the most effective and timely solution.
SmartValve devices are designed to deliver rapid, impactful upgrades by reducing thermal overloads by up to 34%, effectively enabling an additional 100 MW of reliable power through existing lines.
“Partnering with Smart Wires empowers PG&E to proactively meet anticipated capacity demands while ensuring high reliability for our customers,” said Chad Dupuis, Principal Electrical Engineer at PG&E. “This partnership underscores our dedication to adopting innovative technologies that enhance our grid’s flexibility, security, and resilience.”
SmartValve technology represents a quick and economical route to accommodate rising electricity demands, enabling utilities to manage capacity and load dynamically. Its design allows for rapid deployment and adjustments to adjust to changing energy needs and the integration of new power sources. Moreover, the modular and relocatable nature of SmartValve supports future expansion or reconfiguration as grid demands evolve. As the new transmission line is introduced in 2032, SmartValve will continue to optimize power flow across the network, ensuring sustained benefits well into the future.
