Digital Realty Proposes Seattle Data Center Amid Looming Ban

Digital Realty filed permit applications to construct Block 50, a six-story, 380,000-square-foot facility at Third Avenue and Virginia Street in downtown Seattle. The project, which would replace a former Bed Bath & Beyond site, is designed as a co-location data center featuring a research and development lab, office space, and retail areas.

The proposal coincides with a push by the Seattle City Council to halt new large-scale data center projects. The council's Land Use and Sustainability Committee voted unanimously to advance a one-year moratorium, citing public concern over AI energy consumption, noise pollution, and e-waste. The full City Council is scheduled to vote on the ban on June 9.

Digital Realty has characterized the site as a network-dense facility rather than an AI data center and is currently studying the project's energy requirements. The Seattle Department of Construction and Inspections indicated that the Block 50 project may still proceed if all permits are finalized before the moratorium takes effect. Construction is tentatively planned for 2027 or when market conditions are suitable.