The project aims to increase Los Esteros substation’s capacity by more than 100MW.
Located near emerging data centers in the Alviso community, the Los Esteros substation will use SmartValve technology to ensure a stable power supply. The project, set for completion by late 2025, aims to strengthen critical infrastructure and support operational continuity for data centers. The California Independent System Operator (CAISO) projects a load increase of up to 500 megawatts in San Jose due to data center growth, requiring immediate solutions to maintain consistent power delivery from 2025 until a new transmission line is completed in 2032.
Chad Dupuis, PG&E’s principal electrical engineer, stated: “Working with Smart Wires allows PG&E to efficiently address projected capacity needs while maintaining high reliability for our customers. This collaboration highlights our commitment to deploying innovative technologies that enhance our grid’s flexibility, security, and resilience.” After evaluating alternatives, CAISO identified APFC as the most cost-effective, rapid, and reliable solution compared to options like reconductoring or energy storage.
Smart Wires CEO Joanna Lohkamp commented: “As the demand for data centers skyrockets, ensuring a reliable and efficient grid is more important than ever. Our work with PG&E demonstrates the significant impact of our SmartValve technology, dynamically redirecting power from overloaded to underutilized lines.” The SmartValve system can mitigate thermal overloads by up to 34%, enabling an additional 100 megawatts of reliable power delivery through existing lines. Its modular and relocatable design supports dynamic capacity management and future grid expansions, including integration of new power sources.
The technology’s scalability ensures ongoing benefits, even after the 2032 transmission line is operational, by optimizing power flow within the network. In January 2025, Smart Wires secured $65 million to further develop its grid-enhancing technologies, including the SmartValve APFC devices, reinforcing its commitment to advancing energy infrastructure.
