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Microsoft expands presence in San Antonio's growing tech ecosystem with new data center project

Microsoft expands San Antonio data center presence with $215M Westover Hills development.

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icrosoft is investing heavily in its San Antonio operations, with a new $215 million development underway in the Westover Hills area. The tech giant has filed plans for a 245,000-square-foot data center at 3555 Westover Link, which will cost approximately $878 per square foot to build. Dubbed "SAT 17," this project is part of Microsoft's efforts to strengthen its digital infrastructure across the region.

    Scheduled to break ground in February, SAT 17 will be designed by Dallas-based architectural firm Corgan. The development is located near another planned data center at 1101 Sentry Gateway, where Microsoft intends to build four structures adjacent to an existing office building. This marks the first phase of a broader plan for the parcel, which will eventually include three buildings totaling 729,000 square feet.

    As part of its expansion in San Antonio, Microsoft is also building a $483 million data center in Castroville, known as "SAT 82." Construction on this facility is expected to begin in April 2026 and be completed by February 2028. This project joins two other data centers currently under construction at the same site.

    San Antonio has become a hub for data center construction, with several companies investing in the region. Stream Data Centers and CyrusOne recently started building projects on the Far West Side, adding over 1.76 million square feet of space to the area's growing inventory.

Microsoft builds new data center in San Antonio, expanding local tech presence.