AI Datacenter Plan Floated for Boarded-Up San Francisco Mall 2026

A surprising proposal has emerged for San Francisco's boarded-up downtown mall: an AI datacenter project. The San Francisco Centre, vacant since January, is being considered for a community-based AI exhibit by a Maryland development firm.

Downtown San Francisco has struggled to recover from the pandemic, with vacant buildings and a homelessness crisis creating a "doom loop." The mall's closure is a visible symbol of these challenges. Now, an AI datacenter could offer a new purpose.

What Is the AI Datacenter Proposal?

According to the San Francisco Chronicle, Maryland-based KG Growth Partners inquired with city officials in June about datacenter permits on behalf of an unidentified potential buyer. The firm has not yet applied for permits, as CEO Jared Krieger said they do not know if their client has won the bid to purchase the property.

Krieger emphasized that the project would not be a traditional server-based datacenter but a "cohesive, community-based AI exhibit." The Chronicle reported that the exhibit includes plans to transform the 350,000 sq ft property formerly leased by a department store.

Why This Matters for San Francisco's Recovery

The San Francisco Centre has been a focal point of urban renewal efforts. Previous ideas included a multi-level sports complex, housing, and traditional retail. An AI datacenter would be a significant departure, potentially attracting tech investment and foot traffic to the area.

However, the proposal is still in early stages. The unidentified buyer and lack of permit applications mean uncertainty remains. The project's community-based nature could help gain public support, but details are scarce. The background to this story is set out in AI Datacenter Backlash in East Fishkill Sparks Zoning Debate. A related thread runs through Inside the Bitter Fight Over California's Biggest AI Datacenter. Earlier coverage in New York Enacts One-Year Pause on AI Datacenter Development shows how the argument developed.

Key Takeaways

• KG Growth Partners inquired about datacenter permits for the San Francisco Centre in June.
• The project is described as a "community-based AI exhibit," not a traditional datacenter.
• No permits have been filed; the client has not yet won the bid to purchase.
• The proposal is one of several ideas for the vacant mall, including sports and housing.
• The mall has been boarded up since January, symbolizing downtown's pandemic struggles.

Comparing Proposed Uses for the San Francisco Centre

What to Watch Next

The fate of the San Francisco Centre remains uncertain. The city's approval process and the unidentified buyer's bid will determine whether the AI datacenter moves forward. Meanwhile, San Francisco continues to seek solutions for its downtown revitalization. A closer look at the same subject appears in Ohio Datacenter Project Sparks Hope and Concern Locally. Anyone following the wider picture can start with Ai Video: latest articles. The same theme surfaces in AI's Green Algorithm: How Software Cuts Energy Costs, which takes a different angle.

As the proposal develops, questions about zoning, community impact, and economic viability will need answers. The project's unique nature could set a precedent for repurposing retail spaces in the tech era. Context on how this played out before sits in Lexus Partners Verisure 2026 Awards: Vote for Best Home Appliances. A companion piece, Asturias Housing Prices Surge 29.3%: Why the Region Leads Spain, approaches the same subject from another angle.