San Antonio, Texas, January 12, 2026
Microsoft has unveiled plans for a $400 million investment in a new data center in Medina County, Texas, near San Antonio. This facility, named the SAT 82 data center, will be approximately 195,670 square feet and aims to bolster the region’s growth as a tech hub. Construction is expected to begin in August 2026, with completion targeted for July 2028. This move is part of Microsoft’s broader expansion efforts in the San Antonio area, reflecting the rising demand for cloud services and local economic development.
San Antonio, Texas
Microsoft to Invest $400 Million in New Data Center Near San Antonio
Microsoft is set to expand its footprint in the greater San Antonio area with a significant $400 million investment aimed at developing a new data center in Medina County. This facility, dubbed the SAT 82 data center, will cover approximately 195,670 square feet and is scheduled to break ground in August 2026, with an anticipated completion date of July 2028. The move spotlights not only Microsoft’s commitment to the region but also the growing importance of San Antonio as a burgeoning tech hub.
The SAT 82 data center will be strategically located about five miles west of Castroville along FM 471 North. Designed as a colocation facility, the center will allow Microsoft to not only support its own cloud workloads but also lease capacity to third-party customers. As online services and cloud computing continue to rise, this new facility is expected to play a crucial role in accommodating increased demand.
Microsoft’s Broader Expansion in the Region
The establishment of the SAT 82 data center is part of a broader expansion initiative by Microsoft across the San Antonio region. Just last December, the company revealed plans for another data center in the Westover Hills area, spanning 245,000 square feet, with construction slated to commence in February 2025. This momentum indicates Microsoft’s long-term vision for the area while bolstering the region’s economic landscape.
The Impact on Medina County
This investment is poised to have a significant impact on Medina County, exemplifying the rapid growth of the tech scene in the area. With the new data center, there is expected to be increased investment and infrastructure development that may enhance local job opportunities and economic resilience. Such robust investments indicate a thriving environment conducive to entrepreneurial innovation and expansion.
Background on Data Centers in San Antonio
The rise of data centers in San Antonio is notable; industry players have taken a keen interest in this region’s advantageous positioning. The Far West Side has emerged as a preferred location for data centers, largely due to its reliable power infrastructure and strategic accessibility. These factors have created a favorable climate for multiple facilities operated by various tech companies, further solidifying San Antonio’s status as a recognized tech cluster.
Local Business Climate and Future Potential
With Microsoft leading the charge, the influx of investment in data centers is reflective of a broader trend of private investment driven by a commitment to innovation and enterprise. As entrepreneurs and businesses collaborate to tap into this tech growth, they may also benefit from limited regulatory interference, promoting a dynamic environment where new ideas and services can flourish. Such a framework not only aids in capital attraction but also encourages local businesses to stay resilient and adaptive.
Conclusion
The forthcoming SAT 82 data center underlines the positive trajectory of the San Antonio economy, spurred by significant investments in technology and infrastructure. Such developments herald great potential not only for the local economy but also for aspiring entrepreneurs and established businesses alike. As San Antonio continues to evolve into a tech hub, supporting local initiatives and businesses will be vital for maintaining the city’s growth momentum.
| Feature | Details |
|---|---|
| Project Name | SAT 82 Data Center |
| Location | Medina County, Texas, near San Antonio |
| Size | Approximately 195,670 square feet |
| Estimated Construction Value | $400 million |
| Construction Start | August 2026 |
| Completion Target | July 2028 |
| Facility Type | Colocation data center |
| Microsoft’s Previous Expansion | 245,000-square-foot data center in Westover Hills area, construction expected to start in February 2025 |
| Significance for Medina County | Underscores growth of the tech scene, signaling increased investment and infrastructure development |
Frequently Asked Questions
- What is the SAT 82 data center?
- The SAT 82 data center is a new facility being developed by Microsoft in Medina County, Texas, near San Antonio. It will span approximately 195,670 square feet and is expected to begin construction in August 2026, with completion targeted for July 2028.
- Where is the SAT 82 data center located?
- The SAT 82 data center will be located about five miles west of Castroville along FM 471 North in Medina County, Texas.
- What is the purpose of the SAT 82 data center?
- The SAT 82 data center is designed as a colocation facility, meaning Microsoft may lease capacity to third-party customers in addition to supporting its own cloud workloads.
- How does this project fit into Microsoft’s expansion in the San Antonio area?
- This development is part of Microsoft’s broader expansion in the San Antonio region. In December 2025, the company filed plans for a 245,000-square-foot data center in the Westover Hills area, with construction expected to start in February 2025.
- What is the significance of the SAT 82 data center for Medina County?
- The new data center underscores the growth of the tech scene in Medina County, signaling increased investment and infrastructure development in the area.
- What is the background context of data centers in the San Antonio area?
- Microsoft has been expanding its data center presence in the San Antonio area for several years. In December 2023, Vantage Data Centers delivered a 242,000-square-foot location on San Antonio’s Far West Side, known as “TX11.” The Far West Side of San Antonio has become a hub for data centers due to its reliable power infrastructure and strategic location. The area is home to multiple facilities operated by various tech companies, contributing to the region’s growing reputation as a tech cluster.
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
