As tech giants snap up real estate on the Eastside, Bellevue is cementing its reputation as a hub for artificial intelligence. Light rail, newer office infrastructure, proximity to hyperscalers, a deep talent pool, and a proactive city council have combined to draw a new wave of tech jobs to the city — even as layoffs continue elsewhere in the industry.
The broader tech industry has seen tens of thousands of layoffs in recent months, with AI investment frequently cited as the driving force behind workforce reductions. The calculus is straightforward: companies are spending less on headcount and more on infrastructure. Amazon has committed $200 billion to AI-related capital expenditures this year; Microsoft expects to spend at least $110 billion.
A significant share of that spending is flowing into Bellevue. The city’s office market is still working through its post-pandemic recovery (vacancy sits at 26% compared to 6% before COVID), but that availability has become an asset. When Microsoft consolidated its workforce at its Redmond campus, it left behind substantial square footage that AI companies have been quick to absorb.
Bellevue’s city council is leaning into the moment. It recently approved a new economic development plan centered on incubating and attracting AI businesses with the explicit goal of replacing automatable jobs with roles built around the technology reshaping the industry.
The biggest names in AI are already setting up camp. OpenAI, which makes ChatGPT, has taken nearly 300,000 square feet at City Center Plaza, including a recent expansion. Elon Musk’s xAI leased roughly 25,000 square feet in Lincoln Square South. And the activity extends well behind the headline names: data center company CoreWeave occupies a full floor at One Bellevue Center, while Crusoe, a data center hyperscaler, opened a 7,400-square-foot office in Key Center late last year.
Perhaps the most telling sign of Bellevue’s momentum is what Meta is doing. The company originally signed a 15-year lease on the Block 13 building at 1385 123rd Ave. NE in the Spring District back in October 2021, then left it sitting in shell condition after delivery in early 2024, as mass layoffs reduced its space needs. Now Meta has reversed course. In January, the company filed plans to build out all nine floors of the 212,000-square-foot building, and more than 170 open roles were recently posted in Bellevue, many of them focused on AI.
Taken together, these moves paint a clear picture of a city that saw the AI wave coming and positioned itself squarely in its path.
This post was based on information found on Puget Sound Business Journal, Puget Sound Business Journal, and 425 Business.
