{"id":502451,"date":"2026-10-20T18:02:17","date_gmt":"2026-10-20T18:02:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/502451\/"},"modified":"2026-10-20T18:02:17","modified_gmt":"2026-10-20T18:02:17","slug":"could-a-data-center-be-the-answer-to-the-dead-mall-and-help-revive-downtown","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/502451\/","title":{"rendered":"Could a data center be the answer to the dead mall \u2014 and help revive downtown?"},"content":{"rendered":"<p class=\"paragraph-block break-words article-body text-left\">It\u2019s housing! It\u2019s a soccer stadium! It\u2019s a basketball academy! It\u2019s \u2026 a data center?\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">A technology company is interested in the downtown San Francisco Centre Mall as a site for a data center, according to the <a href=\"https:\/\/www.sfchronicle.com\/sf\/article\/downtown-mall-data-center-ai-22480545.php\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">San Francisco Chronicle (opens in new tab)<\/a>. Development consultants KG Growth Partners confirmed to The Standard that it worked with the technology company to submit a bid for the entire mall, including the former Bloomingdale\u2019s.<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">But KG Growth Partners dispute the characterization of the proposal as a data center. \u201cThis is not a data center in the traditional sense,\u201d Jared Krieger, CEO of KG Growth Partners, told The Standard. \u201cIt\u2019s a new category: a regenerative urban energy center.\u201d\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">If the project moves forward \u2014\u00a0which would require it to clear major hurdles, beginning with the selection of its bid by the mall\u2019s sellers \u2014 critics worry\u00a0it could be a departure from a vision for downtown that centers on revitalizing retail and public spaces, much of it focused on the blocks immediately surrounding the mall. That vision has been boosted by the mayor\u2019s office and the Downtown Development Corporation.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">Krieger said this company, which he declined to name, would aim to create more energy than it uses and support downtown activity. Only a third of the mall site would be allocated to the \u201cregenerative urban energy center.\u201d The other two-thirds would be dedicated to culture, retail, sports, wellness, design, and free education, he said, with six acres of green space atop the building.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cThe project gives downtown two things it needs: reliable, sustainable power for its future, and a large public destination in the heart of the city,\u201d he said.\u00a0\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">The mall\u2019s shuttered state hardly fits into that image, and the process of finding a new owner has been drawn out and frustrating for those who want to see Market Street revived. The mall closed at the beginning of this year after <a href=\"https:\/\/sfstandard.com\/2025\/11\/21\/san-francisco-centre-tenant-evictions\/\" data-post-id=\"fec387c7-6f75-463a-a740-b6fea9e6c763\" rel=\"nofollow noopener\" target=\"_blank\">telling its last remaining tenants to leave<\/a> following years of departures, leaving a hollowed-out shell at the center of downtown.\u00a0\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">In July, Presidio Bay and Prado Group <a href=\"https:\/\/sfstandard.com\/2026\/07\/08\/san-francisco-centre-mall-falls-apart\/\" data-post-id=\"404f4429-5514-4fb1-916f-12004abc7deb\" rel=\"nofollow noopener\" target=\"_blank\">walked away<\/a> from plans to buy the mall. The seller received new bids during a round that ended last month, including plans for a <a href=\"https:\/\/sfstandard.com\/2026\/09\/13\/san-francisco-centre-mall-basketball\/\" data-post-id=\"61e7433b-adb6-46df-87ae-f14627a2e20b\" rel=\"nofollow noopener\" target=\"_blank\">basketball-centric athletic complex with a sports bar<\/a>.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">Mayor Daniel Lurie last week <a href=\"https:\/\/sfstandard.com\/2026\/10\/16\/mayor-lurie-data-center-moratorium\/\" data-post-id=\"6251a809-d148-4cde-ba97-764067b2d213\" rel=\"nofollow noopener\" target=\"_blank\">signed a 45-day moratorium on data centers<\/a> being constructed in San Francisco, intended to give the Planning Department time to study the impacts of the facilities and develop regulations governing their construction. Emails obtained by The Standard indicate that the Planning Department is meeting this week with Supervisor Shamann Walton, who authored the moratorium, to discuss whether the department should rework the category it uses to classify data centers, which also includes <a href=\"https:\/\/sfstandard.com\/2026\/09\/22\/ai-capital-world-doesn-t-know-many-data-centers-has\/\" data-post-id=\"43eb30c8-bfef-44aa-afcd-f8bfb5dddf3d\" rel=\"nofollow noopener\" target=\"_blank\">other types of facilities<\/a>.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">In statements, speeches, and social media videos, Lurie has emphasized the need to bring people back downtown, a priority laid out in his \u201cHeart of the City\u201d directive last year.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">The directive says signs of success downtown will include more hotel bookings, more San Franciscans living downtown, and increased transit use. City-backed initiatives have included programs to <a href=\"https:\/\/sfstandard.com\/2026\/04\/16\/downtown-san-francisco-empty-storefront-grants\/\" data-post-id=\"9692e04d-a675-4c3f-8d78-867f988ec4f3\" rel=\"nofollow noopener\" target=\"_blank\">fill vacancies with small businesses<\/a>, privately funded grants to <a href=\"https:\/\/sfstandard.com\/2026\/04\/16\/downtown-san-francisco-empty-storefront-grants\/\" data-post-id=\"9692e04d-a675-4c3f-8d78-867f988ec4f3\" rel=\"nofollow noopener\" target=\"_blank\">support large retailers moving in<\/a>, and infrastructure projects designed to <a href=\"https:\/\/sfstandard.com\/2026\/06\/12\/dandelion-chocolate-union-square-permanent\/\" data-post-id=\"969eb4e7-2d07-4be3-915a-6d826454da1d\" rel=\"nofollow noopener\" target=\"_blank\">improve and beautify corridors<\/a> that receive heavy foot traffic from conference-goers and tourists.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cWe want to see a strong vision for a mixed\u2011use development that is active, vibrant, and serves as a regional destination, one that advances our vision for a 24\/7 downtown,\u201d Anne Taupier, executive director of the Office of Economic and Workforce Development, told The Standard.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">Krieger said that under the technology company\u2019s plan for the mall, only a third of its space would be dedicated to hardware. The other two-thirds would be for public infrastructure, therefore fulfilling the mission of downtown\u2019s revival.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cThat\u2019s a reason for people to come downtown every day, not just a building they walk past,\u201d he said.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">The plan Krieger presented is a far cry from the data centers spanning more than 1 million square feet and accompanying substations that have popped up next to suburban and rural U.S. communities.<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">But the Chronicle\u2019s reporting revealed that KG Growth Partners had inquired with the city\u2019s Department of Building Inspection about using the space for a data center. Those invested in San Francisco\u2019s revival expressed reservations about the plan. Even small data centers can draw substantial amounts of energy from the grid. They also <a href=\"https:\/\/www.wsj.com\/tech\/ai-data-center-job-creation-48038b67\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">employ fewer people (opens in new tab)<\/a> than traditional offices.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cWe\u2019d like to see housing, we\u2019d like to see retail, we\u2019d like to see offices, anything that brings people to the area,\u201d said Karin Flood, one of the owners of the Flood Building across the street from the shuttered San Francisco Centre.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">But central to the downtown development conversation has been the area\u2019s outsize contribution to the city\u2019s tax base, which shrank during the pandemic as offices and storefronts emptied out. In communities across the U.S., data centers have been drivers of economic development and tax revenue.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cThere\u2019s certainly benefits to it,\u201d said Ben Keethler, a founder of CivicLink Partners, a consulting firm that works with local governments to navigate data center development. Keethler reached out to city officials as San Francisco passed its data center moratorium, offering advice based on his work in Loudoun County, Virginia, and other communities.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cBut there\u2019s guardrails that you need to be smart about if it\u2019s an industry you want to contemplate,\u201d he said.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">Stakeholders are skeptical that the technology company\u2019s bid will be chosen. Even if it is, after the moratorium lifts, it could hit permitting obstacles and delays related to development demands. If it makes it past that stage, neighbors are calling for high standards.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cIf a data center does move into SF Centre, its success should benefit the local area, with a public ground floor featuring shops, food, arts, access to the dome, local hiring, and direct support for nearby businesses and cultural groups,\u201d said Fernando Pujals, executive director of the Mid-Market Business Association. \u201cWhatever happens next with this building should build on Market Street\u2019s momentum, not only take energy.\u201d\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">Still, locals questioned whether a proposal for a data center could gain the public support needed to become a reality in the empty mall.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cThat would be political, not to mention Union-Square-comeback-story, suicide, and there\u2019s been a lot that\u2019s been bet on Powell Street,\u201d said Sarah Lacy, who owns The Best Bookstore nearby.<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">Her business landed on Powell Street thanks to a city-supported grant from Vacant to Vibrant. It\u2019s part of a corridor that\u2019s been filling up with retailers along the cable car tracks across Market Street from the mall.\u00a0<\/p>\n<p class=\"paragraph-block break-words article-body text-left\">\u201cThe city needs to fill it, but if they make a wrong turn, it can impact Union Square negatively forever,\u201d Lacy said.<\/p>\n","protected":false},"excerpt":{"rendered":"It\u2019s housing! It\u2019s a soccer stadium! It\u2019s a basketball academy! It\u2019s \u2026 a data center?\u00a0 A technology company&hellip;\n","protected":false},"author":2,"featured_media":502452,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[32135,3010,19628,1335,818,27231,21401,1969,101,103,102,104,106,105,11515,4823,5995,42262],"class_list":["post-502451","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-francisco","tag-boom-loop","tag-commercial-real-estate","tag-data-centers","tag-development","tag-downtown","tag-market-street","tag-mid-market","tag-retail","tag-san-francisco","tag-san-francisco-headlines","tag-san-francisco-news","tag-sf","tag-sf-headlines","tag-sf-news","tag-shopping","tag-small-business","tag-union-square","tag-westfield"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/502451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=502451"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/502451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/502452"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=502451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=502451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=502451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}