- Microsoft is investing $400M in a new 195,000-SF data center in Castroville, near San Antonio.
- A second, larger data center in Castroville—244,675 SF and $482.6M—is planned for 2026.
- Microsoft continues buildout with multiple data centers across the San Antonio region.
Microsoft’s Major Data Centers Commitment
Connect CRE reports that Microsoft has unveiled plans for a $400M data center in Castroville, a small town west of San Antonio. The 195,000-SF facility at 2580 Farm to Market Road 471 N is scheduled to break ground in August. Construction is expected to take two years. The project represents a major investment in San Antonio’s data center growth and reflects rising demand for digital infrastructure.
Additional Expansion in Castroville
In addition to the initial project, Microsoft has filed for a second Castroville center, labeled SAT 82. Microsoft plans to begin construction on the new 245 KSF facility, estimated to cost $482.6M, in April 2026 and complete it by early 2028. Together, these back-to-back projects further position Castroville as a growing data center hub within the broader San Antonio market.
Why It Matters for San Antonio
Microsoft’s newest data centers add to its existing and developing properties in the region. These include sites along Wiseman Blvd, Lambda Drive, Westover Link, and Rogers Road. This rapid expansion highlights San Antonio’s growing appeal as a hub for digital infrastructure. It also supports the region’s broader tech industry and economic development goals. The company’s ongoing national investment in AI-driven data capabilities signals that projects like Castroville are just one piece of a much larger strategic buildout.
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