Another data center will soon be popping up near San Antonio’s Far West Side, according to recent filings with the Texas Department of Licensing and Regulation (TDLR). It would further enhance the Lone Star State’s reputation as a tech cluster.
The quaint town of Castroville, with a population of just over 3,000, is soon to be completed by a $400 million development project owned by Microsoft. The project, called SAT 82, will occupy about 195,000 square feet in Medina County, online records show.
Although it is only a single-story building, it took nearly two years to build, according to TDLR. Construction at the 3580 FM 471 North location will begin on Thursday, August 13, 2026. A visit to the property revealed that equipment and welcome posters were already on site. There is a vacant lot, a two-lane road and residential areas nearby.
Over time, the structure may take on the appearance of a windowless warehouse. Microsoft’s website says it may be difficult for residents to get a clear view of the centers because each center is surrounded by extensive fencing for safety and security purposes.
According to TDLR, SAT 82 joins six other sites in Medina County: SAT 80, SAT 81, SAT 89/90, SAT 93, SAT 94, and another site titled SAT 82, but at a different address.
These hubs provide the infrastructure needed to open phone apps, join virtual Zoom meetings, play online games, and more. They also allowed the company’s Azure cloud platform, artificial intelligence and collaboration tools to continue functioning normally, according to the company’s website.
Earlier this fall, community members in the Redbird Ranch Private Community Facebook group expressed concerns about Microsoft’s presence in the area. Some users worry that the company’s project will worsen traffic conditions. Others highlighted the large amounts of water data centers use.
Microsoft said in its 2024 Sustainability Report that its water usage in 2023 (including but not limited to data centers) increased by 1.7 billion gallons from the previous year to 2.1 billion gallons. The company attributed the increase to the growth of its business.
The report continues: “Improvements in the Redmond campus modernization project are expected to reduce water use at the new facility by more than 50 percent.”
Construction on the property is expected to be completed in 2028, according to TDLR.
This article was originally published on Microsoft spends $400 million to build new massive data center in Texas town.
