Microsoft to Build $400M Data Center in Castroville, Bringing Jobs and Growth to Far West San Antonio
A major new development is on the horizon for far west San Antonio, as Microsoft prepares to build a $400 million data center in Castroville. The facility—known as SAT82—is slated to begin construction on August 13, 2026, at 3580 FM 471 N. Once complete, it will become one of the tech company’s newest additions to its growing network of high-tech infrastructure across the region.
This latest data center will span nearly 196,000 square feet and house five “Colo” modules, along with Tier II-level network systems that help support cloud and artificial intelligence services. It’s the newest part of Microsoft’s broader investment in the U.S. South Central Cloud Region, which includes several major facilities across both Bexar and Medina counties.
Strengthening the Local Economy
Microsoft’s expansion into Castroville is expected to bring a boost of activity to the local economy. During the construction phase alone, the project will create nearly 1,500 construction jobs and require over 6 million labor hours. The company already employs more than 500 people in the greater San Antonio area across its existing data center campuses, which include nearby locations like SAT80 and SAT81 in Medina County, as well as facilities in the Texas Research Park and around Rogers Road in Bexar County.
The economic ripple effect is expected to benefit local businesses, contractors, and service providers as Microsoft sources materials and services from the surrounding community. These projects also contribute to local tax revenue and create long-term operational jobs in areas like IT, building maintenance, and security.
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Investing in People and Partnerships
Beyond construction and operations, Microsoft is investing in local talent. Through partnerships with Northwest Vista College and Palo Alto College, the company launched its Datacenter Academy program, which helps students build the skills needed for careers in tech. During the 2024–2025 school year, 263 students were enrolled in the program, which also offers scholarships and career support.
Microsoft has also made direct contributions to Castroville through community programs, including tree planting at Castroville Regional Park and recreational field upgrades at Lion’s Park. These local investments reflect the company’s ongoing commitment to the communities where it operates.
Built With Sustainability in Mind
Sustainability is a key part of Microsoft’s data center design. The SAT82 facility, like others in Texas, will be constructed to meet LEED Gold standards, with a strong focus on energy efficiency and reducing environmental impact. Backup generators at the site will use renewable biofuels, and the building will rely heavily on air-cooled chillers, which require little to no water for cooling.
In fact, across the region, Microsoft has shifted most of its facilities away from potable water usage, choosing instead to source recycled water through providers like SAWS, Yancey Water, and the East Medina County Special Utility District. That water is cycled through the cooling system and returned safely to wastewater treatment plants in line with local regulations.
The company also reached a milestone in 2024 by reusing or recycling 90.9% of its retired cloud hardware through its Circular Centers—a key part of its zero-waste goal by 2030.
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Keeping It Quiet in the Neighborhood
One common concern when large projects come to small towns is disruption—but Microsoft has designed its data centers to minimize impact. Unlike warehouses or industrial hubs, data centers don’t bring frequent truck traffic. SAT82 will have about 50 employees working in rotating shifts, which helps avoid large traffic volumes and peak congestion.
Noise is also limited. Backup generators and HVAC systems are set back from property lines, and lighting is thoughtfully installed to reduce light pollution while maintaining site security. Microsoft follows local ordinances throughout construction and keeps residents informed of activity through its community blog.
A Long-Term Anchor for the Region
SAT82 is more than a tech build—it’s part of a long-term investment in Medina County’s future. While the project is privately funded and built on private land, its presence is expected to bring wide-reaching benefits, from job creation and infrastructure improvements to sustainability initiatives and educational programs.
As Castroville continues to grow and evolve alongside rapid growth from the San Antonio metro, Microsoft’s presence could help anchor the region as a center for innovation.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.