Maryland-based KG Growth Partners has asked city officials in San Francisco about permitting requirements to convert the shuttered Bloomingdale’s building at 845 Market St. into an artificial intelligence data center, though no formal development application has been filed for the downtown property.
The 350,000-square-foot structure, which was formerly occupied by Bloomingdale’s and sits between Union Square and Yerba Buena Gardens, has drawn inquiries from developers looking to repurpose the struggling real estate. A construction consultant working for KG Growth Partners contacted the San Francisco Department of Building Inspection in June to determine what permits would be needed for an AI Data Center at the address.
The Proposed Conversion Plan for 845 Market Street
While details regarding the prospective buyers, financing arrangements, and precise power needs remain unannounced, project representatives have outlined a structural reuse model for the historic beaux arts facade dating back to the 1890s. Krieger, whose firm advises project sponsors on strategy and financing, noted that his company is working with an unidentified technology company to explore the site.
There is an interest in just making something work.
Source with insight into the city’s downtown recovery efforts
The site presents deep interior spaces with minimal natural light due to its enclosed design, making conventional residential conversions difficult.
City Hall Scrutiny and Zoning Regulations for San Francisco Data Facilities
A sale of the property failed earlier this year. Potential alternate uses for the site, like a soccer stadium or a basketball facility, have been floated.
Records obtained from the San Francisco Department of Building Inspection indicate that municipal regulators have only approved two new data centers since the city added a zoning category for the use in 2001, classifying them broadly as internet service exchanges. Planning Director Sarah Dennis Phillips explained in an email to Supervisor Shamann Walton that the city’s wide regulatory definition also encompasses telecom, fiber, and cable hubs rather than exclusively high-energy machine learning facilities.
That broad classification, paired with a required conditional use permit, gives municipal authorities leverage to evaluate projects that combine digital infrastructure with other retail or public functions. Meanwhile, no formal development application has been submitted regarding the property, leaving the ultimate fate of the former department store space uncertain as stakeholders weigh potential industrial demands against downtown recovery priorities.