Digital Realty is advancing plans to transform a dilapidated parking structure at 727 Grand Ave. in downtown Los Angeles into a 13-story, 230,000-square-foot data center. City planning documents indicate the project will serve as a critical addition to the city’s digital infrastructure while contributing to the ongoing redevelopment of the neighborhood.

The site is located next to Digital Realty’s existing facility at 600 W. Seventh St. and within walking distance of One Wilshire — the renowned high-rise data center at 624 S. Grand. One Wilshire serves as a vital gateway for internet traffic between the U.S. and Asia with roughly one-third of such data passing through its sub-sea cable connections.

Los Angeles has traditionally played a smaller role in the data center market compared to northern Virginia or Chicago, but its vast population and proximity to end-users make it increasingly relevant for latency-sensitive online workloads.

Designed by OfficeUntitled, the new facility will feature a 280-foot-tall façade with a rippling, light-responsive design intended to blend with the area’s evolving architectural character. The development sits amid major downtown projects, including the Bloc and the Freehand Hotel – both renovated in the last decade

As demand for digital infrastructure accelerates, the data center sector faces growing pressure to address environmental challenges. In southern California, water usage is a particular concern. Digital Realty has implemented AI-driven solutions at other U.S. facilities to optimize water-cooled systems, reducing potable water consumption by 15% annually — the equivalent of saving 126 million gallons. These systems also detect inefficiencies such as leaks, supporting more sustainable operations.

Construction is expected to begin in 2025, subject to city approval.

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