San Francisco Pauses Data Center Bids at Mall Site
A new 45-day moratorium at 845 Market Street aims to update outdated city codes for modern energy and water usage.
Updated on Oct. 21, 2026 in Data Centers
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The massive former San Francisco Centre mall at 845 Market Street is now the subject of a potential bid to become a computing hardware facility. City leaders have moved to pause such conversions while they determine if current regulations are equipped to handle their environmental impact.
Why it matters
City officials enacted this moratorium because existing data center codes dating to 2001 do not address modern concerns regarding energy and water use. The proposal also faces a significant hurdle in the form of a land lease held by the San Francisco Unified School District that runs through 2043.
Data centers accounted for 4.4% of U.S. electricity consumption in 2023, a figure projected to grow to between 6.7% and 12% by 2028 according to the Lawrence Berkeley National Laboratory. It remains unclear how these power demands align with current city infrastructure capacity.
The players
KG Growth Partners
The private investment firm that has submitted a bid to convert the former San Francisco Centre site into a data center.
Daniel Lurie
The Mayor of San Francisco who signed the temporary moratorium on new data center approvals.
San Francisco Unified School District
The district that holds a lease on 75,675 square feet of land underneath the mall property through 2043.
Board of Supervisors
The 11-member governing body that approved the urgency ordinance to pause new data center development.
Lawrence Berkeley National Laboratory
The research institution projecting that data centers could consume up to 12% of U.S. electricity by 2028.
The details
KG Growth Partners is seeking to transform the former Bloomingdale's at 845 Market Street into a data center branded as a regenerative urban energy center. The city responded by passing an urgency ordinance on October 6, followed by Mayor Daniel Lurie signing a 45-day interim zoning moratorium on October 16. During this period, the city will evaluate the energy and neighborhood effects of such facilities before deciding whether to allow this development to proceed.
Timeline
2001: Original city data center codes were written.
2023: Data centers consumed 4.4% of all U.S. electricity.
July 2026: The Prado Group and Presidio Bay Ventures abandoned their purchase of the site.
October 6, 2026: The Board of Supervisors approved the new urgency ordinance.
October 16, 2026: Mayor Daniel Lurie signed the 45-day interim zoning moratorium.
Across the Bay
The city's 2001 data center zoning codes established a regulatory baseline that this current moratorium aims to modernize after two decades of rapid industry growth. This pause represents a direct response to the outdated nature of those original standards in the face of modern power demands.
Residents should note that no new data center permits will be issued for 45 days while city staff conduct an environmental review of the policy. This pause halts any immediate progress on the proposed conversion of the mall at 845 Market Street until the moratorium expires.
The takeaway
The city is currently prioritizing a regulatory review of power-hungry data centers over immediate commercial redevelopment of the mall. Keep an eye on Board of Supervisors hearings to see if the 45-day window results in permanent changes to how such facilities are zoned in San Francisco.
Further reading
For more on the changing landscape of local infrastructure, check the Data Centers section.
Source note: This article includes information reported by Environment+Energy Leader.
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