Microsoft Castroville Campus (SAT82): Hyperscale AI Data Center in Texas
Status: Active Development / Phased Buildout | Location: US Highway 90 & FM 471 North, Castroville, TX 78009, United States
Project Overview
Microsoft Castroville Campus (SAT82) is a major hyperscale data center development situated on a 100+ acre site in Castroville, Texas, significantly expanding Microsoft's cloud infrastructure footprint within the San Antonio region and strengthening its rapidly growing network of Azure availability zones across the United States. Purpose-built to support Microsoft Azure cloud services, artificial intelligence (AI), high-performance computing (HPC), enterprise applications, and next-generation digital workloads, the campus features multiple state-of-the-art data center buildings with scalable, high-density data halls designed to accommodate the increasing power and cooling demands of GPU-intensive AI training and inference environments. The modular campus architecture enables phased expansion while providing customers with resilient, flexible infrastructure capable of supporting future growth in cloud computing and AI services. Developed in accordance with Microsoft's next-generation sustainable data center standards, SAT82 incorporates innovative zero-water evaporative cooling technology that minimizes freshwater consumption during normal operations while maintaining highly efficient thermal performance. The facility also supports direct-to-chip liquid cooling, enabling deployment of ultra-high-density server racks required for advanced AI and machine learning workloads. Power for the campus is supplied through long-term 100% renewable energy contracts, including local solar power purchase agreements within the ERCOT electricity market, supporting Microsoft's commitment to achieving carbon-negative operations and sustainable digital infrastructure. The campus is further enhanced by redundant utility feeds, resilient electrical and mechanical systems, enterprise-grade physical security, advanced environmental monitoring, and diverse fiber connectivity to regional and national telecommunications networks. With its scalable design, energy-efficient operations, and high-performance infrastructure, Microsoft Castroville Campus (SAT82) serves as a critical foundation for delivering secure, reliable, and low-latency cloud, AI, and enterprise services to customers across North America while supporting the continued expansion of Microsoft's global hyperscale cloud ecosystem.
Quick Facts
| Field | Value |
| Project Name | Microsoft Castroville Campus (SAT82): Hyperscale AI Data Center in Texas |
| Location | US Highway 90 & FM 471 North, Castroville, TX 78009, United States |
| Status | Active Development / Phased Buildout |
| Commissioning | Phase 1 Go-Live: Target 2026 / Active Multi-Building Development |
| Total IT Load | ~100 MW to 150+ MW Critical IT Power Capacity Allocation (Campus Total) |
| Total Capacity | ~450,000 sq ft (~41,800 m²) gross facility footprint across initial buildings on a 100+ acre site |
| Tier Level | Tier III Equivalent Hyper-Resilient Design / LEED Gold Certified Target / ISO 27001, ISO 14001, SOC 2 Type II Compliant |
| Project Type | Purpose-Built Owner-Occupied Hyperscale AI Cloud, Deep Learning & Enterprise Infrastructure Campus |
City Profile
| Header | Details |
| City Name | Castroville |
| Population | ~3,500 |
| Urban Agglomeration | San Antonio Metropolitan Area (~2.7 million population) |
| City GDP | estimated USD 180+ billion |
| Per Capita Income | ~USD 55,000 (estimated) |
| City Tier | Tier 3 – Emerging Industrial & Digital Infrastructure Location |
| Key Strengths | Strategic location along Interstate 35 and near San Antonio; access to Texas' reliable power and fiber infrastructure; proximity to major enterprise and technology markets; business-friendly environment; available land for industrial and hyperscale developments; growing logistics and manufacturing base; increasing interest in data center and renewable energy projects. |
Companies Involved
| Header | Details |
| Developer / Operator | Microsoft |
| Strategic Infrastructure Partner | CPS Energy / Medina Electric Cooperative Utility Network & City of Castroville Municipal Authorities |
| Construction Contractor | Specialized US Mission-Critical General EPC Contractors |
| MEP Engineering | Microsoft In-House Global Technical Infrastructure & Engineering Teams |
| Network Connectivity | Private global enterprise optical backbone; subterranean path-diverse fiber entrance vaults; redundant Meet-Me-Rooms (MMRs); direct low-latency backhaul connecting Medina County to Microsoft's San Antonio fiber ring and major US network interchanges. |
| Power Infrastructure | High-voltage utility grid substations on-site, static distributed 2N / Block Redundant uninterruptible power supply (UPS) modules, automated switchgear, and multi-megawatt emergency backup diesel generator arrays with multi-day on-site fuel autonomy. |
Technical Specifications
| Header | Details |
| Power Capacity | ~100 MW to 150+ MW Secured Utility Power Allocation |
| UPS Redundancy | Block Redundant / 2N Static UPS Architecture |
| Cooling System | Closed-loop zero-water evaporation cooling system, Direct-to-Chip Liquid Cooling (DLC) readiness for high-density AI clusters, and automated BMS environmental controls. |
| Connectivity | Proprietary low-latency global fiber network connecting directly to regional Microsoft Azure cloud regions and major peering points. |
| PUE Target | < 1.18 Annualized Operational Design PUE |
| Energy Mix | 100% Carbon-Free Renewable Energy backed by local Texas solar and wind Power Purchase Agreements (PPAs) under Microsoft's 100/100/0 climate goal. |
Milestones
| Header | Details |
| Announcement | 2023 |
| Construction Start | 2024 |
| Phase 1 Go-Live | Target 2026 |
| Full Buildout | Active Multi-Building Development |
Investment Details
| Header | Details |
| Total Investment | Estimated $500,000,000 USD to $1,000,000,000+ USD Total Campus Capital Expenditure |
| Funding | Corporate Capital Expenditure (Microsoft Corporation) |