Castroville, Texas, December 26, 2025
Microsoft Corp. has announced plans to construct a $400 million data center in Castroville, Texas. This facility will cover 195,670 square feet and is expected to enhance the company’s infrastructure in the San Antonio area. Construction is set to commence in August 2026, with the completion anticipated by July 2028. The project is part of a broader expansion strategy in the region, where Microsoft has been actively investing in data center developments to meet the rising demand for cloud services.
Castroville, Texas – Microsoft Announces $400 Million Data Center Project
Microsoft Corp. has confirmed plans to build a $400 million data center in Castroville, Texas, marking a significant expansion of its regional infrastructure.
Project Details
The new facility will be a one-story, 195,670-square-foot colocation data center located at 3580 FM 471 North, approximately 5.5 miles outside downtown Castroville. Construction is set to begin in August 2026, with completion expected by July 2028. This project is registered under the Texas Department of Licensing and Regulation as TABS2026008231.
Regional Expansion
This development is part of Microsoft’s broader expansion in the San Antonio area. The company has acquired over 1,400 acres in Medina County and more than 300 acres in Bexar County. Recent projects include:
- 18844 FM 1957: A $712.6 million data center project currently under construction.
- 2995 U.S. 90 West: Two data centers totaling 489,400 square feet, with a combined investment of $765 million, expected to be completed by July 2027.
- County Road 381: Two additional data center buildings totaling 490,000 square feet, with an estimated cost of $700 million.
Community and Infrastructure Impact
Local officials and utility planners are addressing the infrastructure demands posed by these developments. CPS Energy is undertaking approximately $1.3 billion in transmission and generation upgrades to accommodate the increased power requirements of the data centers. Additionally, residents have raised concerns about water usage and the impact of heavy construction traffic on local roads.
Background Context
Microsoft’s investment in the Castroville area reflects the growing demand for data centers driven by advancements in cloud computing and artificial intelligence. The company’s expansion in Texas aims to enhance its cloud services and support the increasing need for data storage and processing capabilities.
Microsoft Corporation Stock Information
As of December 24, 2025, Microsoft’s stock (MSFT) is trading at $488.02, with a market capitalization of approximately $3.85 trillion. The stock has a price-to-earnings ratio of 36.7 and an earnings per share of $14.06.
Frequently Asked Questions (FAQ)
What is the Microsoft SAT82 Data Center project?
The Microsoft SAT82 Data Center is a new construction project involving a one-story, 195,670-square-foot colocation facility located at 3580 FM 471 North, Castroville, Texas. The project is estimated to cost $400 million and is expected to be completed by July 2028.
What is a colocation data center?
A colocation data center is a facility where multiple companies can rent space to house their servers and networking equipment. This allows businesses to leverage shared infrastructure while maintaining control over their own hardware and data.
How does this project fit into Microsoft’s broader expansion in the San Antonio area?
This project is part of Microsoft’s broader expansion in the San Antonio area, where the company has acquired over 1,400 acres in Medina County and more than 300 acres in Bexar County. Recent projects include data centers at 18844 FM 1957, 2995 U.S. 90 West, and County Road 381, reflecting a significant investment in regional infrastructure.
What are the community and infrastructure impacts of this development?
Local officials and utility planners are addressing the infrastructure demands posed by these developments. CPS Energy is undertaking approximately $1.3 billion in transmission and generation upgrades to accommodate the increased power requirements of the data centers. Additionally, residents have raised concerns about water usage and the impact of heavy construction traffic on local roads.
How does this project relate to the growing demand for data centers?
Microsoft’s investment in the Castroville area reflects the growing demand for data centers driven by advancements in cloud computing and artificial intelligence. The company’s expansion in Texas aims to enhance its cloud services and support the increasing need for data storage and processing capabilities.
| Feature | Description |
|---|---|
| Project Name | Microsoft SAT82 Data Center |
| Location | 3580 FM 471 North, Castroville, Texas |
| Investment | $400 million |
| Size | 195,670 square feet |
| Construction Start | August 2026 |
| Completion Date | July 2028 |
| Related Projects | Additional data centers with investments totaling over $2.1 billion in the San Antonio area |
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