Microsoft Castroville SAT84: Hyperscale Cloud & AI Infrastructure Hub in Texas
Status: Active Development / Phased Buildout | Location: 18844 FM 1957 / 2580 FM 471 North, Castroville, TX 78009, United States
Project Overview
Microsoft Castroville SAT84 is a flagship hyperscale data center expansion located within Microsoft's master-planned cloud campus in Castroville, Medina County, Texas, further strengthening the company's rapidly growing Azure cloud infrastructure across the South Central United States. Purpose-built to support Microsoft Azure cloud services, artificial intelligence (AI), high-performance computing (HPC), machine learning, enterprise applications, and next-generation digital workloads, SAT84 encompasses more than 244,000 square feet of advanced technical space engineered to accommodate high-density power delivery and GPU-intensive computing environments. Designed with a scalable and modular architecture, the facility enables Microsoft to rapidly expand cloud capacity while meeting the increasing infrastructure demands of AI model training, inference, analytics, and enterprise cloud deployments. Sustainability remains a central focus of the campus design, with SAT84 incorporating Microsoft's innovative zero-water evaporative cooling technology to significantly reduce freshwater consumption during standard operations, making it particularly well suited to the climate conditions of Texas. The facility also integrates Direct-to-Chip Liquid Cooling (DLC) capabilities, providing efficient thermal management for ultra-high-density AI servers and advanced GPU clusters operating at elevated rack power densities. Electrical infrastructure is supported by dedicated high-voltage substations designed with redundant power distribution systems to ensure continuous availability for mission-critical workloads. SAT84 is directly connected to Microsoft's San Antonio enterprise dark fiber network ring, enabling high-bandwidth, low-latency connectivity between regional Azure campuses, cloud availability zones, enterprise customers, and major telecommunications providers. Complemented by resilient mechanical systems, enterprise-grade physical security, continuous environmental monitoring, and round-the-clock operational support, Microsoft Castroville SAT84 delivers a secure, energy-efficient, and future-ready hyperscale platform that supports Microsoft's long-term cloud expansion strategy while providing the scalability, reliability, and sustainability required for the next generation of AI and cloud computing services.
Quick Facts
| Field | Value |
| Project Name | Microsoft Castroville SAT84: Hyperscale Cloud & AI Infrastructure Hub in Texas |
| Location | 18844 FM 1957 / 2580 FM 471 North, Castroville, TX 78009, United States |
| Status | Active Development / Phased Buildout |
| Commissioning | Phase 1 Go-Live: Target 2026–2028 / Active Multi-Building Campus Construction |
| Total IT Load | ~50 MW to 70 MW Critical IT Power Capacity Allocation (SAT84 Building Allocation) |
| Total Capacity | ~244,000 sq ft (~22,670 m²) gross facility footprint across colocation halls (Campus total: 1M+ sq ft across 150+ acres) |
| 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 Facility |
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 / Medina County Municipal Authorities |
| Construction Contractor | Specialized US Mission-Critical General EPC Contractors |
| MEP Engineering | Microsoft In-House Global Technical Infrastructure & Engineering Teams |
| Network Connectivity | Private 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 generators running on renewable biofuel with multi-day on-site fuel autonomy. |
Technical Specifications
| Header | Details |
| Power Capacity | ~50 MW to 70 MW Secured Utility Power Allocation (SAT84 Building 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 availability zones 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 sustainability commitments. |
Milestones
| Header | Details |
| Announcement | 2024 |
| Construction Start | 2024–2026 |
| Phase 1 Go-Live | Target 2026–2028 |
| Full Buildout | Active Building Development |
Investment Details
| Header | Details |
| Total Investment | Estimated $450,000,000 USD to $500,000,000 USD Building Capital Expenditure |
| Funding | Corporate Capital Expenditure (Microsoft Corporation) |