Medina County, Texas, December 19, 2025
Microsoft Corporation has unveiled plans for a significant investment of approximately $765 million to build two new data centers in Medina County, Texas. The facilities, SAT89 and SAT90, will each span 244,700 square feet, with construction commencing in June 2025 and completion projected by August 2027. This initiative aims to bolster Microsoft’s cloud infrastructure in the region, generating approximately 1,490 construction jobs and 530 operational roles, while also emphasizing environmental and community engagement efforts.
San Antonio, Texas – Microsoft Expands Data Center Operations in Medina County
Microsoft Corporation has announced plans to invest approximately $765 million in two new data centers, SAT89 and SAT90, in Medina County, Texas. Each facility will cover 244,700 square feet, with construction slated to begin in June 2025 and completion expected by August 2027. This expansion is part of Microsoft’s broader strategy to enhance its cloud infrastructure and services in the region.
Project Details
- Investment: $765 million
- Facility Size: 244,700 square feet per data center
- Construction Timeline: Start in June 2025; completion by August 2027
- Operational Capacity: Each facility is anticipated to have a 60 MW power capacity, aligning with Microsoft’s existing data center designs in the area.
Economic Impact
The development of SAT89 and SAT90 is expected to generate significant economic benefits for Medina County. The construction phase will create approximately 1,490 jobs, requiring an estimated 6.1 million hours of labor. Once operational, the data centers will employ around 530 individuals, contributing to the local economy and providing long-term employment opportunities.
Community Engagement
Microsoft is committed to being a responsible corporate neighbor. The company has implemented practices to minimize environmental impact, including noise and light reduction measures, ecological restoration efforts, and ensuring that suppliers adhere to local laws and environmental regulations. Additionally, Microsoft has collaborated with local educational institutions to support workforce development, such as the Datacenter Academy program, which had 263 students in the 2024-2025 academic year.
Background
Microsoft’s investment in Medina County is part of a broader expansion of its data center operations in the San Antonio area. The company has previously invested over $700 million in the region, with additional facilities planned to meet the growing demand for cloud services. This expansion underscores Microsoft’s commitment to enhancing its global cloud infrastructure and supporting the digital transformation of businesses and communities.
Related Developments
In addition to the Medina County expansion, Microsoft has been involved in several other significant data center projects:
- Cheyenne, Wyoming: Microsoft has begun construction on a new data center campus in Cheyenne, with completion expected in early 2026. The project is anticipated to create numerous local jobs and contribute to the region’s economic growth.
- United Arab Emirates: Microsoft and G42 have announced a 200-megawatt expansion of data center capacity in the UAE, expected to come online before the end of 2026. This expansion is part of Microsoft’s $15.2 billion investment in the region.
- Wisconsin: Microsoft has increased its data center investment in Wisconsin to $7 billion, with plans for a second massive AI data center in Mount Pleasant, expected to employ about 500 people at its peak.
Conclusion
Microsoft’s continued investment in data centers across various regions highlights the company’s dedication to expanding its cloud infrastructure and supporting local economies. The Medina County project, along with other initiatives, reflects Microsoft’s strategic efforts to meet the growing demand for cloud services and contribute positively to the communities in which it operates.
Frequently Asked Questions (FAQ)
What is the total investment Microsoft is making in the Medina County data centers?
Microsoft is investing approximately $765 million in two new data centers, SAT89 and SAT90, in Medina County, Texas.
When is construction expected to begin and complete for the new data centers?
Construction is slated to begin in June 2025, with completion expected by August 2027.
What is the expected operational capacity of each data center?
Each facility is anticipated to have a 60 MW power capacity, aligning with Microsoft’s existing data center designs in the area.
How many jobs will the construction and operation of these data centers create?
The construction phase will create approximately 1,490 jobs, requiring an estimated 6.1 million hours of labor. Once operational, the data centers will employ around 530 individuals.
What environmental and community engagement practices is Microsoft implementing for this project?
Microsoft has implemented practices to minimize environmental impact, including noise and light reduction measures, ecological restoration efforts, and ensuring that suppliers adhere to local laws and environmental regulations. Additionally, Microsoft has collaborated with local educational institutions to support workforce development, such as the Datacenter Academy program, which had 263 students in the 2024-2025 academic year.
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Key Features of Microsoft’s Medina County Data Center Expansion
| Feature | Details |
|---|---|
| Investment | $765 million |
| Facility Size | 244,700 square feet per data center |
| Construction Timeline | Start in June 2025; completion by August 2027 |
| Operational Capacity | 60 MW per facility |
| Job Creation | 1,490 construction jobs; 530 operational jobs |
| Environmental Practices | Noise and light reduction; ecological restoration; supplier compliance with local laws and regulations |
| Community Engagement | Collaboration with local educational institutions; support for workforce development programs |
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