Microsoft to Double San Antonio Data Center Campus with 244K SF Expansion

Microsoft is set to significantly expand its data center campus in Medina County, Texas, as reported by the San Antonio Business Journal. The development, documented in a filing with the Texas Department of Licensing and Regulation, involves constructing a 244,000-square-foot, single-story building capable of accommodating up to five tenants. The project is slated to begin in April 2026 with an estimated cost of $483 million. The design is being handled by WSP USA, based in New York, and the construction is expected to be completed in the first quarter of 2028. This expansion marks the third data center Microsoft is developing near Castroville, Texas, with the first two buildings anticipated to be operational later this quarter.

San Antonio's Data Center Boom

San Antonio is witnessing a surge in data center developments, with several major companies joining the trend. Alongside Microsoft, other notable players such as CyrusOne, Vantage Data Centers, Amazon, and CloudHQ are expanding their footprints in the region. Recently, Stream Data Centers commenced work on its third project in the area, a massive campus comprising up to five AI-ready buildings totaling 1.5 million square feet and supporting up to 200 MW of capacity. The first building, covering 300,000 square feet, is expected to be completed by the second quarter of 2025.

Major Projects in the Midwest

Microsoft's commitment to data center development extends beyond Texas, with significant investments in the Midwest. One of its most notable projects is a $1 billion, 215-acre data center campus in Mount Pleasant, Racine County, Wisconsin, which began construction in August 2023. Led by Walsh Construction, the project includes four buildings with foundation work starting in the fall of 2023 and completion anticipated by 2026.

In May, Microsoft revealed plans to expand this Wisconsin project, potentially adding over $2 billion in cloud and AI infrastructure capacity. The expansion also involves collaborations with Gateway Technical College and the University of Wisconsin–Milwaukee, as well as a partnership with National Grid to develop a new 250 MW solar project in the region.