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Data center operator reveals plans for downtown Seattle facility as city weighs one-year ban

🏢 Digital Realty of Austin plans to demolish the building at 301 Virginia St. in downtown Seattle and replace it with a six-story structure.

📊 The proposed facility would feature four floors dedicated to data center operations, plus additional space for a lab, offices, and retail.

⚖️ Seattle City Council is currently weighing a one-year moratorium on new data centers due to public concerns over power and water usage.

🗳️ On Wednesday, the council's land use committee voted to send the proposed ban resolution to the full council for consideration.

🤖 A Digital Realty spokesperson described the project as a "highly connected, network-dense facility" rather than an AI data center.

⚡ The company stated it is still assessing the specific power needs required for the new construction.

📜 The proposed ban would prohibit the city from filing, processing, or approving applications for new data centers for one year.

🌍 This local debate reflects a broader national backlash against the data center boom driven by AI industry demands.

🏙️ Digital Realty already operates an existing colocation data center in the nearby Westin Building at 2001 Sixth Ave.

♨️ Heat from the company's existing data center is piped across the street to help warm Amazon's offices as part of a district-energy system.

🏛️ The site at 301 Virginia St. is currently owned by Clise Properties, which also manages the Westin Building project.

🎨 The building was formerly a Bed Bath & Beyond store and is now home to Cannonball Arts, a contemporary art and music venue.

Bullish Signals
  • Digital Realty is an established player with more than 300 data centers worldwide, signaling strong market confidence.
  • The company plans to replace the existing building at 301 Virginia St. with a six-story structure featuring four floors dedicated to a data center plus additional lab, office, and retail space.
  • Digital Realty already operates a successful colocation data center in the nearby Westin Building at 2001 Sixth Ave., which integrates into a district-energy system that heats Amazon's offices.
  • The proposed facility is described as a 'highly connected, network-dense facility,' highlighting its advanced infrastructure capabilities.
  • Clise Properties owns the site and has partnered with Digital Realty on previous projects, indicating strong local stakeholder support for the development.
Risk Factors
  • The City of Seattle is considering a one-year moratorium on new data centers due to public concerns over the industry's high demands for power, water, and utility rates.
  • The proposed ban cites that new data centers require great amounts of electricity, resulting in significant increases in demand and requiring investment in new infrastructure to meet demand.
  • Digital Realty submitted its permit filings on May 29, but it remains unclear if the city's proposed resolution prohibiting the processing or approval of new applications during the moratorium period will apply to this specific filing.
  • The company is still assessing the project's power needs, creating uncertainty about whether the facility can meet the infrastructure requirements highlighted by the city council.
Full Analysis
Digital Realty, a Texas-based real estate investment trust with over 300 data centers globally, has submitted permit filings to demolish the former Bed Bath & Beyond building at 301 Virginia St. in downtown Seattle and replace it with a six-story mixed-use structure. The proposed development would feature four floors dedicated to data center operations, along with additional space for a laboratory, offices, and retail. This proposal arrives as the City of Seattle considers a one-year moratorium on new data centers following public concerns regarding the industry's high demands for power, water, and utility rates. The city council's land use committee voted to send the ban measure to the full council, with the resolution citing the significant electricity requirements of AI-driven data centers and the need for new infrastructure investment. Digital Realty spokespersons have characterized their specific project as a "highly connected, network-dense facility" rather than an AI data center, noting that the company is still assessing its power needs. The applicability of the proposed ban to this specific filing, submitted on May 29, remains unclear as the resolution prohibits the city from processing or approving new applications during the moratorium period. Digital Realty already maintains a presence in the area through an existing colocation data center located in the Westin Building at 2001 Sixth Ave. That facility utilizes a district-energy system partnership with Clise Properties, which also owns the site at 301 Virginia St., to pipe heat from the data centers to warm Amazon's offices across the street. The building slated for redevelopment is currently occupied by Cannonball Arts, a contemporary art and music venue produced by the organizers of the Bumbershoot festival.