Published in Microsoft Azure

Microsoft Plans $400m Data Center in Castroville, Texas

Jan 08, 2026 | Posted by Abdul-Rahman Oladimeji

Microsoft is planning to invest $400 million in a data center project in Castroville, Texas. Dubbed SAT 82, the data center will be located at 2580 Farm to Market Road, 471 N in Castroville, a town to the west of San Antonio.  The data center will span 195,670 sq ft (18,178 sqm) across one story, and will include a Tier II IDF network and Tier II AZNG network.

Microsoft previously filed for another data center building dubbed SAT 82 in July 2024, instead located at 18844 Farm to Market Road. The company said the data center would stretch to 244,675 sq ft (22,730 sqm) in size, with construction work starting in April 2026 and the project scheduled for completion in early 2028. That data center was estimated to cost Microsoft $482.6 million. It is unclear if the new application is in addition to this existing project or if it will replace it.

Across the rest of San Antonio, the company has data centers in operation and development across 3545 Wiseman Blvd, 15000 Lambda Drive, 3555 Westover Link, and 5200 Rogers Road.

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