Microsoft to invest $765 Millions in two new Data Centers in Texas

Microsoft is set to significantly expand its presence in Texas with the development of two new data centers, SAT89 and SAT90, along Highway 90 in Medina County, near San Antonio. Each facility will span 244,700 square feet. The total investment for this expansion is estimated at $765 million, with construction scheduled to begin in June 2025 and completion targeted for August 2027.

Currently, Microsoft’s active owned capacity in Texas stands at 3 million square feet. With the addition of SAT89 and SAT90, the company’s total footprint will grow to 5.7+ million square feet, with the new facilities expected to come online before Q4 2028.

Projected Layout and Power Capacity

Given the similarity in square footage to SAT40, we can make educated estimates about the potential layout and capacity of these new data centers based on Microsoft’s existing deployments. If SAT89 and SAT90 follow the SAT40 design, each site is expected to have a 60 MW power capacity.

Source: Google Earth

To align with Microsoft’s most recently published PUE for this region (1.28, as of June 2023), we will use this efficiency metric for our analysis (source). SAT40 has been operational since Q4 2021, making it a strong reference point for estimating future configurations.

Potential Compute Capacity

If SAT89 and SAT90 adopt the SAT40 layout with 60 MW of capacity per site, utilizing air cooling, we can estimate their potential compute capabilities. Based Aterio's data, this would allow for:

• 36,711 NVIDIA H100 GPUs deployed across 4,589 servers.

This projection assumes Microsoft continues leveraging air cooling, as seen in its other Texas deployments. If alternative cooling methods, such as liquid cooling, were integrated, these figures could shift depending on efficiency gains and hardware density improvements.

Final Thoughts

With this expansion, Microsoft is reinforcing its dominance in the San Antonio data center hub, where it has maintained a strong presence for over a decade. Given the region’s existing infrastructure, energy availability, and network connectivity, SAT89 and SAT90 are poised to become key facilities in Microsoft's growing cloud ecosystem. Using SAT40 as the reference design, these sites are expected to contribute significant GPU compute capacity, potentially powering future AI and cloud workloads at scale.

This development represents a major investment in Texas’ digital infrastructure, solidifying San Antonio’s position as a critical cloud hub for Microsoft’s global network.

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