# 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.
- Title: San Francisco Mall for AI Data Center · Sfchronicle | Shortify
- Summary: San Francisco’s shuttered downtown mall could become an AI data center after a development firm sought city approval.
- Keywords: san francisco, ai data center, downtown mall, kg growth partners, 845 market st, bloomingdale's, macy's, b3 investors, san francisco centre mall, ai lab, data center permitting, san francisco city hall
- Source: Sfchronicle — https://sfchronicle.com/sf/article/downtown-mall-data-center-ai-22480545.php
- Read time: 2 min
- Topics: san francisco, ai data center, downtown mall, kg growth partners, 845 market st, bloomingdale's, macy's, b3 investors, san francisco centre mall, ai lab, data center permitting, san francisco city hall
## 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.
## Key takeaway

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.