Microsoft — San Antonio, Texas AI Data Center Campus

Microsoft has operated data centers in San Antonio, Texas since 2007, making this one of the company’s oldest and most mature US infrastructure investments. The San Antonio cluster, located in the north and northwest quadrants of the city, supports the Azure southcentral US region and has been progressively expanded to accommodate AI workloads.

San Antonio offers relatively low electricity costs from CPS Energy (the city-owned utility), land availability along the Highway 281 and Loop 1604 corridors, and excellent fiber connectivity. The city’s business climate, skilled workforce from local universities including UTSA and Trinity University, and access to deep water fiber through Gulf Coast submarine cable landing stations make it a strategic Azure location.

Microsoft has repeatedly announced expansions of its San Antonio presence, including investments totaling over $1 billion in the region. The campus supports Azure AI services, Microsoft 365, Xbox cloud gaming, and OpenAI API deployments via Azure OpenAI Service. San Antonio’s power infrastructure has been upgraded in coordination with CPS Energy to support the growing demands of the data center campus.