San Francisco Mall AI Data Center Plan Faces Permit Freeze

Oct 20, 2026
A confidential client is exploring buying the closed San Francisco Centre mall to turn its upper floors into a data center and AI lab, as the city pauses data center permits.

A confidential client of KG Growth Partners is exploring the purchase of the closed San Francisco Centre mall, according to NBC Bay Area. The proposal would convert the upper floors into a data center and AI lab.

The plan would retain public space on the ground floor and provide water for a rooftop community garden. KG Growth Partners CEO Jared Kreiger did not identify the prospective buyer.

Mayor Daniel Lurie said he was unaware of the proposal and noted that the property remains for sale. Last week Lurie approved a 45 day moratorium on City Hall approving permits for new data centers. The San Francisco Chronicle first reported the proposal.

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