Castroville, Texas, January 12, 2026
Microsoft is set to invest $400 million in the construction of a new data center in Castroville, Texas, located 27 miles from San Antonio. The SAT 82 Data Center will span approximately 195,670 square feet, with construction beginning in August 2026 and completion expected by July 2028. This investment highlights Microsoft’s growth in the San Antonio area, enhancing its cloud and AI services and driving economic growth through job creation.
San Antonio, Texas
Microsoft Invests $400 Million in Castroville Data Center
Microsoft is investing $400 million to build a new data center in Castroville, Texas, approximately 27 miles west of downtown San Antonio. This facility, named SAT 82 Data Center, will cover about 195,670 square feet and is expected to begin construction in August 2026, with completion targeted for July 2028. This project underscores Microsoft’s ongoing expansion in the San Antonio region, following previous investments in Medina County.
Project Details
- Location: Castroville, Texas, near San Antonio
- Investment: $400 million
- Facility Size: Approximately 195,670 square feet
- Construction Timeline: Start in August 2026; completion by July 2028
- Project Name: SAT 82 Data Center
Context and Significance
This development is part of Microsoft’s broader strategy to enhance its data center presence in the San Antonio area. The company has previously established multiple facilities in Medina County, contributing to the region’s growing reputation as a hub for digital infrastructure. The new data center is expected to support Microsoft’s cloud and AI services, catering to increasing demand for data processing and storage.
The San Antonio region has become a focal point for data center investments, attracting major technology companies due to its favorable conditions, including reliable power infrastructure and a stable climate. These developments are anticipated to create numerous job opportunities and stimulate economic growth in the area.
Related Developments
- Vantage Data Centers: Delivered a 242,000-square-foot facility on San Antonio’s Far West Side in December 2023, with an estimated cost of $95.8 million.
- Stream Data Centers: Under construction for a 300,000-square-foot facility on West Military Drive, with plans for a 1.5 million square foot campus supporting 200 MW at full build.
- Google: Announced a $40 billion investment in Texas data centers, including facilities in Armstrong and Haskell counties, to support AI infrastructure.
These initiatives reflect the growing demand for data processing capabilities and the strategic importance of the San Antonio area in the tech industry’s expansion.
Frequently Asked Questions (FAQ)
What is the SAT 82 Data Center?
The SAT 82 Data Center is a new facility being developed by Microsoft in Castroville, Texas, near San Antonio. It will cover approximately 195,670 square feet and is expected to begin construction in August 2026, with completion targeted for July 2028. The project is part of Microsoft’s ongoing expansion in the San Antonio region.
Why is Microsoft investing in a data center in Castroville?
Microsoft is investing in the Castroville data center to enhance its cloud and AI services, meeting the increasing demand for data processing and storage. The San Antonio region offers favorable conditions, including reliable power infrastructure and a stable climate, making it an attractive location for data centers.
What other data center developments are occurring in the San Antonio area?
Other developments include Vantage Data Centers’ 242,000-square-foot facility on San Antonio’s Far West Side, Stream Data Centers’ 300,000-square-foot facility on West Military Drive, and Google’s $40 billion investment in Texas data centers, including facilities in Armstrong and Haskell counties. These projects reflect the growing demand for data processing capabilities and the strategic importance of the San Antonio area in the tech industry’s expansion.
Key Features of the SAT 82 Data Center
| Feature | Details |
|---|---|
| Location | Castroville, Texas, near San Antonio |
| Investment | $400 million |
| Facility Size | Approximately 195,670 square feet |
| Construction Timeline | Start in August 2026; completion by July 2028 |
| Project Name | SAT 82 Data Center |
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