Microsoft is planning to invest $400 million in a data center project in Castroville, Texas.

As first reported by My San Antonio, Microsoft filed for the data center with the Texas Department of Licensing and Regulation in December 2025.

Dubbed SAT 82, the data center will be located at 2580 Farm to Market Road, 471 N in Castroville, a town to the west of San Antonio.

The project is set to begin in mid-August 2026, with an aimed completion of June 2028 and an estimated cost of $400m.

The data center will span 195,670 sq ft (18,178 sqm) across one story, and will include a Tier II IDF network and Tier II AZNG network.

This is not the company's first data center set for Castroville. Microsoft is also developing the SAT 80, 81, at 8844 Farm-to-Market Road in Castroville, and in March 2025 filed for a further two buildings at 2995 US HWY 90 W for a separate campus.

Microsoft previously filed for another data center building dubbed SAT 82 in July 2024, instead located at 18844 Farm to Market Road. The company said the data center would stretch to 244,675 sq ft (22,730 sqm) in size, with construction work starting in April 2026 and the project scheduled for completion in early 2028. That data center was estimated to cost Microsoft $482.6 million. It is unclear if the new application is in addition to this existing project or if it will replace it.

Across the rest of San Antonio, the company has data centers in operation and development across 3545 Wiseman Blvd, 15000 Lambda Drive, 3555 Westover Link, and 5200 Rogers Road.

Microsoft opened its first South Central US Azure region in Texas in 2008, which offers three availability zones. It also opened a US Gov Texas Azure region in 2017.