State government and Silicon Valley are teaming up.
On Thursday, Governor Gavin Newsom announced a $50 million investment from tech giant Meta to support a major redevelopment project in downtown Sacramento, paving the way for Sacramento State to expand its campus into the area.
The funding was secured by Sacramento State and the California Department of General Services (DGS) and will be used to jump-start the transformation of three underutilized, state-owned buildings along Capitol Mall into a mixed-use academic and housing district.
Plans for the sites include affordable and market-rate housing, a boutique hotel, a new downtown School of Public Affairs located near the Capitol, a performing arts and music venue, and an Artificial Intelligence Center designed to support a new bachelor’s degree in AI business management.
“This is a transformative investment in the future of downtown Sacramento and in Sacramento State,” university President Dr. Luke Wood told The OBSERVER. “We are transitioning to an enterprise model that allows us to serve as an engine for economic development for our region, and the support from Governor Newsom and Meta is a testament to the role Sacramento State will play in the region’s future.”
Sacramento State and DGS are currently operating under an Exclusive Negotiating Agreement that gives the university the authority to lead the master planning process for the redevelopment.
“Meta is proud to call California home and we’re excited to work with Governor Newsom and Sacramento State to drive innovation in our state capital.” Meta Founder and CEO Mark Zuckerberg said. “I believe these investments will help strengthen our communities and support the next generation of leaders and innovators.”
Meta is a major American technology company that owns apps like Facebook, Instagram, WhatsApp, Messenger, and Threads.
Though design plans and timeline are still in early stages, the buildings slated for redevelopment include the former Employment Development Department headquarters and State Personnel Board Building on Capitol Mall, and the EDD Solar Building on N Street.
The project stems from a 2019 executive order issued by Newsom directing state agencies to repurpose excess state-owned land for affordable housing and community development. State officials say the Capitol Mall redevelopment aligns with broader efforts to address California’s housing shortage while revitalizing urban centers.
Environmental review and design development are expected to be the next steps as Sacramento State moves forward with reimagining its presence in the region.