SAN JOSE — Two major transmission projects serving Silicon Valley are moving forward after the California Independent System Operator's board lifted a hold on the developments.
The decision comes as electricity infrastructure becomes increasingly important to the region's technology economy, particularly as data centers and artificial-intelligence operations require more reliable power.
AI Economy Puts New Focus on Electricity
Silicon Valley's technology industry has traditionally been associated with software, venture capital and semiconductor companies.
Increasingly, however, electricity infrastructure is becoming part of the region's technology story.
Artificial-intelligence systems require large amounts of computing capacity.
That computing capacity is housed in data centers that can consume enormous amounts of electricity.
Reliable power is therefore critical for companies operating large computing facilities.
Transmission projects can help move electricity across the regional grid and provide additional capacity.
The latest decision allows two Silicon Valley projects to move ahead after the previous hold was lifted.
The developments come as utilities and grid planners face pressure to accommodate growing electricity demand.
Technology companies are also competing with residential and commercial customers for access to reliable power.
California faces an additional challenge because it is attempting to expand electricity supplies while maintaining ambitious clean-energy goals.
That means new infrastructure must be planned carefully.
Community groups and environmental advocates often scrutinize transmission projects because power lines and substations can affect neighborhoods and land.
For Silicon Valley businesses, however, the issue is increasingly viewed as an economic necessity.
Companies planning large computing facilities need confidence that the electrical system can support them.
The latest transmission decision therefore has implications beyond the energy industry.
It could influence where future technology infrastructure is developed and how quickly AI-related investment can expand.
As Silicon Valley's technology economy changes, power infrastructure may become one of the most important factors determining its next phase of growth.
