San Francisco’s doomed mall probed as future data center

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Just months after closing, San Francisco’s Centre mall could be turned into a massive AI data center.

Maryland-based financial advisory firm KG Growth Partners inquired about a permit for a data center at the shuttered mall in June, the San Francisco Chronicle reports.

The firm told the City of San Francisco that it is working with an unidentified partner who is interested in the 350,000-square-foot portion of the mall that was once home to a Bloomingdale’s.

The news comes just as San Francisco is taking measures against AI data centers. Last week, Mayor Daniel Lurie signed a moratorium barring the city from approving new data centers for 45 days.

Under the moratorium, he San Francisco Planning Department is tasked with studying the impacts of data centers.

San Francisco Centre Mall closed in January 2026 after suffering a high vacancy rate and the closure of several major businesses, including Nordstrom in 2025 and Bloomingdale’s in 2025.

KG’s CEO Jared Kreiger shared details of the planned project with the Chronicle, saying the ground floors of the building would remain ‘active and open’, while upper floors would be reserved for technical use.

“Downtown San Francisco has a vacancy problem in exactly this building type, and the premise is that reuse with a mixed public and technical program does more for the block than a dark box does,” Kreiger said.

The proposed new owner plans to partner with ‘known AI Lab’ for the development, to create AI-controlled living space,” continued.

“Our client is interested, in partnership with a known AI Lab, in developing the mall property, including Bloomingdale’s, into an AI-controlled living space,” Krieger said, further telling the Chronicle that the planned facility’s “proprietary AI design can utilize resources, such as dedicating water to a rooftop garden. This would then be donated to a nonprofit focusing on food insecurity for use in transient shelters.”

While Kreiger declined to share who KG’s client was, the Chronicle reported last month that commercial real estate firm B3 Investors was nearing a deal to purchase the Bloomingdale’s section of the mall, and also put in a bid to buy the rest of the mall.

Earlier this year, Presidio Bay Ventures and Prado Group purchased the mall, with plans to convert it into a retail and commercial space. But the developers walked away from the deal in July due to failed talks over the ground lease.

Former mayor London Breed floated the idea of turning the mall into a soccer stadium back in 2023, while a more recent plan from Urban Land Development and TMG Partners suggests the space be transformed into a multi-level sports complex complete with a members-only club and a basketball academy.

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