Microsoft Building Another Data Center in San Antonio

Microsoft is ramping up its data center operations in San Antonio with a $215 million development in the Westover Hills area.

The software company recently filed plans with the state to build a 245,000-square-foot data center at 3555 Westover Link, the San Antonio Business Journal reported. The cost comes to $878 per square foot.

The project, dubbed “SAT 17,” is part of the tech giant’s efforts to strengthen its digital infrastructure across the region. It is scheduled to break ground in February, with Dallas-based architectural firm Corgan overseeing its design.

SAT 17 is near another of Microsoft’s planned data centers, at 1101 Sentry Gateway, where the company intends to build four structures adjacent to an office building it already owns. The development will mark the first phase in a broader plan for the parcel. Over the next decade, it plans to develop three buildings totaling 729,000 square feet, providing space for future expansion.

As part of its expansion in the San Antonio area, Microsoft is also building a $483 million data center expansion in Castroville. Construction on the 244,700-square-foot Castroville facility, known as “SAT 82,” is expected to begin in April 2026, with completion set for February 2028. It will join two other data centers, “SAT 80” and “SAT 81,” currently under construction at the same site.

The expansion comes as part of a broader trend of increased data center construction in San Antonio, with the region becoming a hub for these types of facilities. For instance, Stream Data Centers and CyrusOne both started construction on projects on the Far West Side last summer, adding a combined 1.76 million square feet of space to the region’s growing inventory.

— Andrew Terrell