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December 17, 2006

Microsoft headed for San Antonio?

Posted by David Hunter at 8:51 PM ET.

The rumor that Microsoft is planning on building one of the new breed of mega datacenters for online services outside San Antonio, Texas is back with more details:

Microsoft Corp. confirmed Friday that it’s looking at San Antonio for a new building, and people close to the deal say the software giant is close to announcing plans to build a huge $980 million data center in Westover Hills.

Microsoft is looking to create a 470,000-square-foot structure that would employ about 100 people and would be next to the $68 million Lowe’s Cos. Inc.’s data center announced earlier this year, according to a source with knowledge of the project. The data centers will be near each other so they can share some infrastructure related to cooling the buildings, he said.

The company is attracted to the San Antonio area because of its reliable and relatively inexpensive power, according to the source, who requested anonymity. Microsoft’s data center could consume more electricity than Toyota Motor Manufacturing of Texas’ new truck plant.

“It appears everything is moving right,” Bexar County Judge Nelson Wolff said. “We hope to have something to announce after the first of the year.”

As is common these days the city and county apparently offered various economic incentives, but in an interesting twist the city gets a cut of the revenues of the local electrical utility so there are more than the usual visions of sugarplums.

Filed under General Business, Microsoft, Online Services, Real Estate

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One Response to “Microsoft headed for San Antonio?”

  1. Microsoft to build mega data center in San Antonio -- Microsoft News Tracker Says:

    [...] The San Antonio rumors have borne fruit as Microsoft announced today that they will be building one of their mega datacenters for online services in San Antonio although the price tag is about half that rumored: Microsoft Corp. announced Thursday that will build a $550 million data center in San Antonio to house its growing online services. [...]

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