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 eyed for development as a data center.

KG Growth Partners has confirmed that the property was 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 the firm is working with an unidentified potential buyer for 845 Market Street, a 350,000 sq ft (32,515 sqm) portion of the mall formerly occupied by Bloomingdale’s and 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’s unclear if a deal for any part of the mall has gone through yet.

As well as a data center and offices, the project would include an AI exhibit that would be open to the public.

Earlier this month, however, San Francisco officials approved a 45-day data center moratorium in order to give the city’s 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 customers had exited the site, including Nordstrom in 2023 and Bloomingdale’s in 2025. The site totals 1.8 million sq ft (168,000 sqm) of retail and office space.

Earlier this year, Prado Group and Presidio Bay Ventures entered an agreement 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 earlier this year from owner Macy’s, as well as the rest of the site.

TMG Partners and Urban Land Development have partnered and proposed converting the site into a sports and entertainment complex with basketball and volleyball courts. The San Francisco Recovery Fund is also said to be interested in the site.