Jul 7, 2026
New 230k SF Data Center Development Planned In El Segundo
Los Angeles County has been at the forefront of growing pushback against the construction of new data centers, with Monterey Park residents recently voting to ban such projects citywide. But in a rarity for the State of…
Traded Editorial
- Welcome Group Inc. is proposing to demolish the existing Hyatt Place hotel at 750 N. Nash Street in El Segundo, California, and replace it with a new five-story data center totaling approximately 230,000 square feet.
- The project, designed by engineering firm Arup and development firm Eight Form, would rise to roughly 160 feet and include a new electrical substation on the site.
- Welcome Group Inc. acquired the Hyatt Place property in 2022 for $49 million and typically focuses on hotel development, making this data center proposal a notable departure from its core portfolio.
Welcome Group Inc. is seeking to redevelop 750 N. Nash Street in El Segundo by demolishing the existing Hyatt Place hotel — built less than 15 years ago — and constructing a new five-story data center in its place. The proposed building would total approximately 230,000 square feet and stand roughly 160 feet tall. A new electrical substation would also be built as part of the project. The proposal is unusual for California, where data center development has faced growing community and regulatory resistance.
What the Project Would Look Like
Plans prepared by engineering firm Arup and development firm Eight Form depict a contemporary building with an exterior composed of metal and glass. The design reflects a functional but modern aesthetic consistent with current data center architecture. No general contractor has been announced. The project will require an amendment to a previously adopted environmental impact report tied to the broader El Segundo Corporate Campus, which covers the area bounded by Nash Street, Mariposa Avenue, Douglas Street and the C Line's right-of-way.
What the Companies Say About the Project
No executive comments or public statements from Welcome Group Inc., Arup or Eight Form were included in the announcement. The project has been submitted for city review, but no formal public comment period or hearing date has been disclosed.
What Project Details Have Been Released
Welcome Group Inc. acquired the Hyatt Place site at 750 N. Nash Street in 2022 for $49 million. The company's portfolio is primarily focused on hotel development, including the neighboring AC Hotel. The proposed data center would be five stories, approximately 160 feet in height, and approximately 230,000 square feet in size. Arup is the engineering firm and Eight Form is the design firm. A general contractor, construction timeline and project completion date have not been announced. The project requires an environmental review amendment before it can move forward through the city's approval process.