Microsoft Expands with a New Data Center Near San Antonio

new data center construction project announced near san antonio

Microsoft, the tech behemoth based in Washington, is set to further bolster its digital cloud capacity with a new data center in Medina County, not far from its expansive facility on the Far Westside of San Antonio. The company has recently filed plans with the Texas Department of Licensing and Regulation for a 106,012-square-foot data center on Potranco Road.

According to the TDLR filings, the new data center will be situated at 18844 Farm to Market Road 1957, Castroville, TX 78009, also known as Potranco Road. The proposed location is approximately seven miles from Microsoft’s enormous data center off Highway 211.

new data center construction project announced in castroville near san antonio texas
18844 Farm to Market Road 1957, Castroville, TX

Texas Department of Licensing and Regulation Filing

The filings detail the construction of a new data center accompanied by an administrative building. Additional facilities include a utility yard, vehicle entry gates, a pedestrian turnstile, and a security guardhouse. The estimated cost of the project is around $230 million, which is considerably less than the $1 billion, 1 million-square-foot facility off Highway 211.

Despite the layoffs, Microsoft continues to invest in data center development due to the increasing demand for cloud-technology services in the business world. Data centers require minimal staffing, making them a viable investment even during workforce reductions.

Microsoft Current Presence in Texas

Microsoft’s presence in San Antonio continues to grow, despite the recent layoffs of 10,000 employees worldwide. The company is planning another data center at the Texas Research Park, a $176 million, 153,000-square-foot facility. The project, known as “SAT40,” is set to begin construction on June 15, with a targeted completion date of September 15.

Microsoft is also working on another data center expected to be completed in 2024, a 245,000-square-foot structure worth approximately $216 million. The company’s first San Antonio building was a 427,000-square-foot facility on the Far West Side, established in 2005. In 2015, it built a $1 billion, 1 million-square-foot data center on a 158-acre lot.

Microsoft is scheduled to commence construction on the facility on Friday, July 28, with an anticipated completion date in the fall of 2024. However, these dates and other project details may be subject to change as the project progresses.

This new facility will complement another $215 million data center currently under construction on the Far Westside of San Antonio near SeaWorld. The latter project is expected to be completed by March 2024.

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