A proposal to set up a data center at a site leased by Nvidia in San Jose, California, is facing an appeal from opponents after it received the go-ahead from the local planning authority.

The city of San Jose’s planning commission approved a special use permit and an exemption from environmental review for a 4.86-acre, 97,800 sq ft (9,085 sqm) property at 300 Holger Way, earlier this month. The site was leased by Nvidia back in December 2024 on an agreement running until 2035.

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Though Nvidia is not named in the planning application, the GPU giant had previously stated that it plans to invest “significant capital performing a complete custom build-out into a state-of-the-art data center/lab facility" at the site.

Planning documents show that the data center would offer 20MW of capacity, and state that “the project would involve interior tenant improvements only, including installation of data racks.