News Summary
Microsoft is set to invest $1.5 billion in expanding its data centers in San Antonio, constructing two new facilities that will enhance digital infrastructure and create local opportunities. The project, which includes additional data centers in the surrounding area, emphasizes a growing demand for data management as AI and cloud technologies evolve. This expansion reflects Microsoft’s commitment to the local community, promising sustainable practices and enhanced connectivity for businesses.
San Antonio Welcomes Microsoft’s $1.5 Billion Data Center Expansion
In an exciting development for the tech scene, San Antonio is gearing up for a massive expansion as Microsoft commits to investing a whopping $1.5 billion to construct data centers in the area. The tech giant has set its sights on two new facilities located at 2995 U.S. Highway 90 W., covering a combined area of 489,400 square feet. This significant investment is expected to bring various opportunities to the local community, as well as enhance the digital infrastructure necessary for our increasingly data-driven world.
The Details of the Construction
The construction of these two new data centers is estimated to cost around $765 million. Groundbreaking is anticipated to kick off in June 2024 and is projected to wrap up by July 2027. These state-of-the-art data centers will act as colocation facilities, allowing other companies to rent space to handle their growing data needs. That’s right, it’s not just Microsoft reaping the benefits—local businesses will have the chance to leverage these facilities to upscale their operations.
As if that’s not enough, Microsoft has even more plans in the works. Two additional data centers are slated for construction along County Road 381, which will boast a total area of 490,000 square feet and an estimated cost of $700 million. Construction for these new buildings is expected to begin in May 2025 and finish by June 2027.
A Growing Footprint in Medina County
Microsoft isn’t just stopping at the immediate construction; they currently own about 1,112 acres in Medina County, including the vibrant towns of Castroville and Hondo. Ongoing projects in this area amount to about $712.6 million, located at 18844 FM 1957. Additionally, the company’s landholdings extend into Bexar County, where over 300 acres feature a cluster of existing data centers on the far West Side of San Antonio.
The Need for Speed: Rising Demand for Data Centers
The tech landscape is undergoing a seismic shift with the burgeoning demand for data centers, primarily due to the accelerating growth of artificial intelligence and cloud-based technologies. Areas like West Bexar County and Medina County are being recognized as prime hotspots thanks to their accessible power, robust fiber infrastructure, and safety from potential hazards. Local organizations like CPS Energy are on board, advocating for the strategic placement of these data centers to effectively manage power loads, ensuring a reliable energy supply.
Continued Development and Sustainability Efforts
Microsoft isn’t just expanding its reach; it’s also enhancing its existing campus at 15000 Lambda Drive with a new 79,385-square-foot facility and additional projects on the horizon. Noteworthy developments also include new data centers labeled SAT 80, SAT 81, and SAT 82, expected to be constructed at 18844 Farm-to-Market Road in Castroville, which will encompass approximately 734,000 square feet.
Among these exciting projects is a data center—SAT 82—set to be a notable 244,676-square-foot facility carrying a budget of $482.6 million, with plans to break ground in April 2026 and complete it by early 2028.
Microsoft’s Commitment to the Community
As Microsoft expands in San Antonio, it is also dedicated to tackling societal challenges through its digital infrastructure development. The company has more than 300 data centers globally and pledges to significantly reduce its water usage, having already cut consumption by 39% since 2021. With initiatives like zero-water evaporated designs for cooling systems in their new projects, including those in Arizona, Microsoft continues to position itself as a responsible and forward-thinking organization.
Looking ahead, Microsoft aims to utilize 100% renewable energy by 2025 and achieve clean energy access around the clock by 2030. With such ambitious and green initiatives, Microsoft’s profound impact on the local tech landscape and community is poised to grow, making the future as bright as the Texas sun.
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Additional Resources
- San Antonio Express News
- Wikipedia: Microsoft
- Data Center Dynamics
- Google Search: Microsoft Data Centers San Antonio
- CoStar
- Google Scholar: Data Center Expansion
- CRN
- Encyclopedia Britannica: Microsoft
- GeekWire
- Google News: Microsoft Data Centers San Antonio
