Exclusive: San Francisco’s shuttered downtown mall is being eyed for an AI data center
KG Growth Partners has asked San Francisco officials what permits would be required to convert part of the shuttered San Francisco Centre mall into an AI data center, though no formal application has been filed. The proposal faces possible opposition, power and water concerns, property-acquisition hurdles, and a city moratorium that temporarily bars approval of new data centers while officials study regulations.
Maryland-based KG Growth Partners is exploring an AI data center at 845 Market St., the former Bloomingdale’s portion of San Francisco Centre. The firm asked the San Francisco Department of Building Inspection about permitting requirements on behalf of an unidentified technology client, but no application has been submitted and the property’s sale remains unresolved. KG says the concept would retain active, public-facing ground-floor uses while placing technical functions on upper floors and in back-of-house areas.
The proposal comes as San Francisco grapples with vacant downtown real estate and rising demand for space from AI and physical-AI companies. Potential opposition centers on data centers’ electricity and water demands, while officials must also assess whether the mall can obtain sufficient infrastructure. Mayor Daniel Lurie recently signed a 45-day moratorium on approvals of new data centers as the city studies their impacts and considers new rules. B3 Investors is separately pursuing the mall property, and other redevelopment concepts remain under consideration.