California's energy-hungry tech industries are studying the feasibility of building their own $850 million, 600-megawatt power plant to guarantee a reliable source of low-cost power. The idea, still in the concept stage, would be the first of its kind in the nation and likely would involve emerging "clean-coal" technology.

Plans call for construction of a state-of-the-art plant, possibly in the Central Valley, by 2012. Seed money would be supplied by Silicon Valley businesses and data center operators, who would commit to purchasing at least a 1 percent equity interest in the plant and sign a long-term contract to buy a minimum of 6 megawatts of power. That seed money would be used to gain financing. The bulk of the electricity would be sold to municipal utility companies and energy trading companies.

SILICON VALLEY/SAN JOSE BUSINESS JOURNAL