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Unnamed buyer explores AI facility at shuttered San Francisco Centre
A developer says an unidentified client is considering turning upper floors of the closed downtown mall into a data center and AI lab, with public space and a community garden also proposed. The concept has no confirmed buyer and faces a 45-day city pause on permits for new data centers, along with resident concerns about resource use and neighborhood impacts.
An unidentified prospective buyer is exploring a plan to convert the upper floors of San Francisco Centre into a data center and artificial intelligence lab, while adding public space at street level and a rooftop garden, according to the head of a development firm working on the proposal.
Jared Kreiger, CEO of Maryland-based KG Growth Partners, said a confidential client is considering purchasing the entire shuttered mall. The client’s identity has not been disclosed, and no sale has been completed. San Francisco Centre, which has been boarded up, closed in late January.
The proposal would include water for a rooftop community garden, which could be donated to nonprofits addressing food insecurity. Details about the project’s size, water needs, energy use, jobs or timeline were not provided.
The idea comes as downtown San Francisco seeks ways to draw people and activity back to its commercial core. But Mayor Daniel Lurie said he did not know about the proposal and stressed that the property remains for sale.
“I’m hopeful that we get someone in there that will bring a lot of people downtown,” Lurie said.
Last week, Lurie approved a 45-day moratorium on city permits for new data centers. The pause could complicate any plan requiring approval to build a new facility, though the proposal’s permitting needs have not been detailed.
Some San Francisco residents expressed skepticism, citing concerns that data centers can consume substantial amounts of water and bring environmental impacts, continuous noise and vibration. Nicholas McNely, who lives a few blocks from the mall, questioned whether the project would primarily benefit its investors. Others saw a possible economic upside: Janet Li, visiting from Burlingame, said an AI center could bring more workers downtown.