Bidders are competing for a former Bloomingdale's shopping center site in San Francisco as a potential data center location.
A vacant mall in San Francisco, California, is being eyed for a potential data center development. First reported by the San Francisco Chronicle, the former San Francisco City Centre Mall is being considered for development as a data center.
KG Growth Partners has confirmed that the property is being evaluated for a project that would include a data center for an unnamed AI lab.
In June, the company asked the city about data center permitting, saying it is working with an unidentified potential buyer for 845 Market Street. This 350,000-square-foot (32,515-square-meter) portion of the mall was formerly occupied by Bloomingdale's and is owned by Macy's. A deal for that portion of the site could reportedly be valued at around $40 million.
No application has yet been filed with the city, and it is unclear whether a deal for any part of the mall has been completed.
In addition to a data center and offices, the project would include an AI exhibit open to the public.
Earlier this month, however, San Francisco officials approved a 45-day data center moratorium to give city planners time to research the impact of data centers on communities.
Opened in 1988, the nine-story San Francisco Centre Mall closed in January 2026 after several tenants had exited the site, including Nordstrom in 2023 and Bloomingdale's in 2025. The site totals 1.8 million square feet (168,000 square meters) of retail and office space.
Earlier this year, Prado Group and Presidio Bay Ventures agreed to buy the mall, but the deal collapsed after the pair were unable to renegotiate a long-term ground lease with the San Francisco Unified School District, which owns a portion of the land beneath the mall.
B3 Investors, a subsidiary of Austin-based B3 Commercial Management, was also reportedly looking to buy the Bloomingdale's portion of the mall from owner Macy's earlier this year, as well as the rest of the site.
TMG Partners and Urban Land Development have partnered on a proposal to convert the site into a sports and entertainment complex with basketball and volleyball courts. The San Francisco Recovery Fund is also reportedly interested in the site.