San Jose is about to get a major glow-up, and it’s all thanks to the insatiable appetite for data centers in the AI boom.

Canada-based real estate company Westbank just scored unanimous approval from the City Council to develop two massive projects that are basically a tech sandwich: multifamily housing slapped between data centers. At 323 Terraine St., an 18-story apartment complex with 345 homes will cozy up next to an 11-story data center, proving that even urban planning can have a sense of irony.

AI’s Urban Playground

Mayor Matt Mahan’s Innovative Project Pathway Program is basically rolling out the red carpet for developers, waiving fees and cutting through bureaucratic red tape faster than a Silicon Valley startup pivots its business model. The goal? Get more housing built in downtown San Jose, which has been about as lively as a dead tech startup’s office.

Not Just Concrete and Circuits

But here’s the twist: city leaders aren’t just throwing up soulless data centers. They’re demanding creativity. Vice Mayor Pam Foley wants these tech temples to actually contribute to downtown’s vibe. The developers are even talking about capturing waste heat from data centers to power residential spaces - because nothing says “sustainable urban living” like recycling server exhaust.

The Housing-Tech Hybrid

The second project at 300 S. First St. is even more ambitious: three 30-story towers with 1,147 homes, a data center, underground parking, and retail space. It’s like a vertical ecosystem where tech and living coexist, proving that San Jose isn’t just a tech corridor, but a potential blueprint for future urban development.

Who knew data centers could be the unexpected heroes of urban revitalization?