El Segundo Data Center Proposed to Replace Modern Westside Hotel
Welcome Group plans a 230,000-square-foot data center in El Segundo, California, on the site of a former Hyatt Place hotel. The project is advancing toward approval and involves an amendment to the existing environmental impact report. This proposal stands in contrast to recent municipal opposition and a data center ban in nearby Monterey Park, indicating a complex local regulatory environment.
Welcome Group's proposal for a 230,000-square-foot data center in El Segundo, California, is moving forward, according to Urbanize Los Angeles. The industrial technology facility is slated to replace a Hyatt Place hotel at 750 N. Nash Street, which was built less than 15 years ago. The development stands in contrast to a growing trend of municipal resistance to tech infrastructure projects across Southern California.
Engineering firm Arup and developer Eight Form have submitted plans for a five-story, 160-foot-tall structure. The facility, designed with contemporary metal and glass, would be supported by a new electrical substation to meet its substantial power requirements. This project by Welcome Group, a hospitality-focused investment firm that acquired the property in 2022 for $49 million, also owns the adjacent AC Hotel.
The data center's progression is contingent upon an amendment to the environmental impact report for the El Segundo Corporate Campus. This designated study area, predominantly comprised of hotels and offices, also hosts a Los Angeles Lakers training center. The proposal highlights a divergence from decisions in neighboring areas, such as Monterey Park, which recently enacted a citywide ban on data center developments following community opposition.