From Sfchronicle · · 2m
San Francisco Mall for AI Data Center
San Francisco’s shuttered downtown mall could become an AI data center after a development firm sought city approval.
In brief
San Francisco’s shuttered downtown mall could become an AI data center after a development firm sought city approval. San Francisco’s shuttered downtown mall may become an AI data center with a technology firm and an AI lab partner, despite concerns about energy use and city recovery. Originally reported by…
Shuttered Mall Site
A development firm asked the city if San Francisco’s shuttered downtown mall could become an AI data center.
KG Growth Partners
Maryland-based KG Growth Partners asked the city in June about data center permitting for 845 Market St.
AI Data Center Plan
KG’s construction consultant said they need permits for an AI data center at the mall site.
City Moratorium
Mayor Lurie signed a 45-day moratorium on new data centers after concerns about energy use and water consumption.
Opposition Concerns
Opposition focuses on energy farms using too much power and water while disrupting communities.
KG’s Model
KG says the project keeps ground floor active with technical use in upper floors to avoid dark box problems.
AI Lab Partnership
KG’s client plans to develop the mall into an AI-controlled living space with water-saving features.
Energy and Water Concerns
The project faces hurdles including power supply and water availability for a data center.
Historic Mall Site
The San Francisco Centre Mall has a Beaux-Arts facade from the 1890s and sits between Union Square and Yerba Buena.
Property Challenges
The mall’s split ownership and long-term ground lease make repurposing difficult for developers.
B3 Investors
B3 Investors, a Texas-based firm, is nearing a deal for Bloomingdale’s parcel owned by Macy’s.
Macy’s Property
Macy’s owns the Bloomingdale’s parcel separately from the rest of the 1.5 million-square-foot mall.
City’s AI Boom
San Francisco’s AI boom is pushing demand for data centers beyond conventional office space.
Data Center Rules
City Hall is studying data center rules after a 45-day moratorium on new facilities.
Real Estate Challenges
Real estate sources say apartments and offices don’t pencil due to high costs and vacancies.
What Happens Next
City Hall may approve the data center if it keeps ground floor active and public-facing.
The main idea
San Francisco’s shuttered downtown mall may become an AI data center with a technology firm and an AI lab partner, despite concerns about energy use and city recovery.
