Natural gas and electric utility Pacific Gas and Electric Company (PG&E) has announced a new project in collaboration with Smart Wires to enhance grid reliability and support the energy needs of new data centres in San Jose in the US state of California.
The project involves the deployment of Smart Wires’ advanced power flow control (APFC) technology at PG&E’s Los Esteros electric substation, aiming to increase capacity by more than 100MW.
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The Los Esteros substation, located near the developing data centres in the Alviso community, will receive Smart Wires’ SmartValve APFC devices.
The initiative is designed to bolster critical infrastructure and maintain operational continuity for the data centres, and is targeted for completion in late 2025.
PG&E principal electrical engineer Chad Dupuis 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.”
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By GlobalDataThe California Independent System Operator (CAISO) has forecasted a load increase of up to 500MW in the San Jose area, attributed to the expansion of data centres.
Although a new transmission line is scheduled for 2032, an immediate solution is essential to guarantee a consistent power supply from 2025 onwards.
Following thorough evaluation of alternatives, CAISO pinpointed APFC as the optimal solution in terms of cost, speed and reliability, outperforming other options such as reconductoring and energy storage.
Smart Wires CEO Joanna Lohkamp stated: “As the demand for data centres 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 underutilised lines. This approach addresses current capacity constraints and optimises existing infrastructure for the massive energy needs of data centres while also offering a scaleable solution for future grid enhancements.”
SmartValve technology is known for its rapid deployment and significant impact, capable of mitigating thermal overloads by up to 34%. This enhancement permits an additional 100MW of firm power delivery through existing lines.
The technology’s flexibility allows utilities to dynamically manage capacity and load, catering to the fluctuating demands of electricity and facilitating the integration of new power generation sources.
SmartValve’s modular and relocatable design also ensures that it can support future grid expansions or modifications.
The technology will continue to provide value even after the new transmission line becomes operational in 2032, by dynamically balancing power flows within the network.
In January 2025, Smart Wires secured $65m to expand its grid-enhancing technologies and services, including the SmartValve APFC devices.
