Digital Realty, a Texas-based real estate investment trust, has proposed the construction of a new data center in downtown Seattle, seeking to replace the former Bed Bath & Beyond location at 301 Virginia St. with a six-story facility. The project entails four floors dedicated to data center operations, alongside lab, office, and retail spaces, as indicated in permit filings.
This initiative arrives amid discussions by the Seattle City Council regarding a potential one-year moratorium on new data centers, driven by increasing public concern over the significant electricity and water demands of the AI sector. On Wednesday, the council's land use committee advanced the proposal to the full council for further consideration.
While the moratorium could impact Digital Realty's project, the company, which operates over 300 data centers globally, submitted its application on May 29. A spokesperson for the firm characterized the planned facility as “network-dense” rather than focused on AI, and mentioned that assessments of the project’s power requirements are ongoing. The proposed ban aims to address the surge in electricity demand resulting from the rapid expansion of data centers.