Microsoft Bets $400M on Texas with New Data Center in Castroville

Microsoft has filed plans for a $400 million data center in Castroville, a small town of just over 3,000 people located near San Antonio in Medina County. The project, named SAT 82, will span approximately 195,000 square feet and is set to break ground in August 2026, with completion expected nearly two years later.

This investment adds to Texas' growing reputation as a tech cluster, joining over 400 other data centers already operating across the state. For construction professionals specializing in data centers, industrial projects, and mission-critical infrastructure, this represents another major opportunity in one of the nation's fastest-growing construction markets.

What is Microsoft building?

The SAT 82 data center will be located at 3580 FM 471 North in Castroville, a quiet town situated between San Antonio and the Texas Hill Country. According to filings with the Texas Department of Licensing and Regulation (TDLR):

• Project value: $400 million
• Size: Approximately 195,000 square feet
• Structure: One-story building
• Construction start: August 13, 2026
• Timeline: Nearly two years to complete

Despite Castroville's small population, the location offers strategic advantages for data center development, including proximity to San Antonio's infrastructure, available land, and access to power and connectivity resources critical for large-scale data operations.

Site visits have already revealed equipment and welcome signage on the property, indicating that pre-construction preparations are underway. The surrounding area features open fields, a two-lane road, and residential properties, marking a significant transformation for this rural community.

Why Texas continues to attract investment

Microsoft's $400 million investment in Castroville is part of a broader trend of tech companies expanding their data center footprint in Texas. The state already hosts over 400 data centers, driven by several factors:

Business-Friendly Environment

Texas offers no state income tax, a favorable regulatory climate, and competitive energy costs - all critical considerations for data center operators managing massive power consumption and operational expenses.

Energy Infrastructure

Texas has a robust and independent energy grid (ERCOT) with significant renewable energy capacity. Data centers require enormous amounts of electricity and Texas' diverse energy portfolio (including wind, solar, and natural gas) makes it an attractive location for power-hungry facilities.

Strategic Location

Texas' central U.S. location provides low-latency connectivity to major markets across the country. Its proximity to major metros like Dallas, Houston, Austin and San Antonio ensures access to skilled labor and business ecosystems.

Available Land

Unlike densely developed coastal markets, Texas offers abundant land at competitive prices, making it easier to develop large-scale facilities like Microsoft's 195,000-square-foot data center.

Growing Tech Ecosystem

Major tech companies including Google, Amazon (AWS), Meta and Oracle have all made significant data center investments in Texas over the past several years. This creates a clustering effect, attracting more investment, talent, and supporting infrastructure.

How this impacts Construction

Data centers are among the most technically demanding construction projects in the industry. They require:

Mission-Critical Reliability

Data centers must operate 24/7 with near-perfect uptime. This means construction must deliver flawless power systems, redundant cooling, backup generators and infrastructure designed to prevent any downtime.

Advanced MEP Systems

Mechanical, electrical and plumbing coordination is critical. Data centers require sophisticated HVAC systems to manage heat loads, electrical systems capable of handling enormous power demands, and backup systems that seamlessly activate during outages.

Tight Timelines

Microsoft's two-year timeline for a 195,000-square-foot facility is aggressive. Construction teams must maintain strict schedules, coordinate multiple trades efficiently, and address any delays immediately to avoid pushing back the project's operational date.

Specialized Expertise

General commercial construction experience isn't sufficient for data center projects. These facilities demand leadership teams who understand the unique technical requirements, regulatory compliance, and operational standards that make data centers functional.

Site Development Challenges

Building in a rural area like Castroville presents logistical challenges including site preparation, utility extensions, road improvements, and coordination with local infrastructure. Construction teams must navigate these complexities while staying on schedule and budget.

What this means for recruitment in the Construction industry

Microsoft's $400 million investment will drive significant demand for specialized construction talent in the San Antonio area and across Texas.

Project Managers & Directors

Data center projects require experienced project managers who understand mission-critical infrastructure, advanced MEP coordination, and the operational requirements that make these facilities unique. Leaders with proven track records delivering data centers, industrial facilities, or other complex projects will be essential.

Superintendents

Managing on-site operations for a data center demands superintendents skilled in coordinating multiple trades, maintaining strict schedules, and ensuring quality at every phase. Experience with large-scale ground-up construction and advanced building systems is critical.

MEP Coordinators

Mechanical, electrical, and plumbing coordination is the backbone of any data center. MEP coordinators must design and oversee sophisticated cooling systems, power distribution, backup generators, and redundancy measures that ensure the facility operates flawlessly.

Safety Managers

High-stakes construction projects with tight timelines require rigorous safety management. Safety managers with experience on industrial or mission-critical projects understand the additional layers of oversight and compliance these sites demand.

Site Supervisors and Foremen

Day-to-day execution relies on skilled site supervisors and foremen who can manage crews, maintain quality standards, and keep work progressing efficiently across all trades.

The Bigger Picture: Texas' Data Center Boom

Microsoft's Castroville project is just one example of the data center boom happening across Texas. Recent investments include:

• Google's $40 billion investment in Texas through 2027, including data center campuses in Armstrong and Haskell Counties
• AWS (Amazon Web Services) breaking ground on a data center in Chantilly, Virginia, and expanding operations in Texas
• Meta, Oracle, and other tech giants announcing billions in data center investments across the state

This wave of investment signals sustained, long-term demand for construction professionals with data center and industrial experience. For those with the right expertise, opportunities are expanding rapidly. For companies building these facilities, securing experienced leadership early is critical to staying on schedule and delivering to the exacting standards these projects require.

Building Data Center or Industrial Projects in Texas?

If you're hiring for data center, industrial, or mission-critical construction projects in Texas, Tom Judd specializes in connecting top construction professionals with leading employers across the state.

With 20 years of recruitment experience and a deep network of senior construction professionals in Dallas, Houston, Austin, and San Antonio, Tom understands the Texas market inside out and knows how to find the right talent for complex, high-stakes projects.

? Reach out to Tom: tom@wesearchpeople.com

About We Search People

We Search People is the leading recruiter of senior construction professionals on the US East Coast and Texas. With years of experience in construction staffing, we work with clients in a variety of ways—from contingent recruitment to retained relationships. Whether you're looking for a Construction Director, Superintendent, Project Manager, or building a whole team, we can help. Our consultants are true specialists who know the market inside out and have access to the best candidates for the job.