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Microsoft has unveiled plans to invest $52 million in the development of two new data centers in Medina, Texas, a town located approximately 65 miles northwest of San Antonio. The tech giant's announcement highlights its continued expansion in the region, which has become a critical hub for its data center operations.
The planned projects, named Microsoft SAT93 and Microsoft SAT94, will receive $26 million in funding each. Construction on SAT93 is slated to begin in March 2027, while work on SAT94 will follow one month later in April 2027. Both data centers are expected to be located at a greenfield site on 381 County Road in Medina.
Each facility will be a one-story building covering 245,000 square feet (22,760 square meters). According to filings with the Texas Department of Licensing and Regulation (TDLR), SAT93 is projected to be completed by the end of April 2029, with SAT94 finishing roughly one month thereafter.
Gensler Architecture, Design & Planning, P.C. has been tapped as the designer for both facilities.
This investment comes after Microsoft had previously filed for two projects under the same names and address in February 2025. The earlier proposals outlined a much larger investment of $350 million per project, with construction originally planned to begin in mid-2025 and completion expected by mid-2027. The reasons for the revised investment amounts and adjusted timelines have not been disclosed.
DCD has contacted Microsoft for further details about the changes to the project’s scope and schedule, but no additional information has been provided as of now.
Medina is the latest addition to Microsoft’s growing presence in the San Antonio area, where the company has several established and developing data centers. Recent filings show Microsoft’s continued expansion in nearby Castroville, Texas, where it announced a $400 million data center project earlier this year. Other facilities across San Antonio include sites on Wiseman Blvd, Lambda Drive, Westover Link, and Rogers Road.
Notably, the 5150 Rogers Road location is undergoing a $5 million renovation that will include the installation of an "interior archive enclosure" with insulated walls and ceiling, a vapor barrier, and an insulated door with seals, along with necessary mechanical, electrical, and plumbing integrations. This renovation was detailed in a separate TDLR filing.
Microsoft initially established its South Central US Azure region in Texas in 2008, followed by the opening of a US Gov Texas Azure region in 2017, further solidifying its commitment to the area.
The Medina projects add to the company’s growing portfolio of data centers and reflect the ongoing demand for cloud infrastructure in the region. However, with changes to the scope and timeline of the Medina projects, the full impact of these investments remains to be seen.
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