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Microsoft has filed plans to invest $52 million in two new data centers in Medina, Texas, located 65 miles northwest of San Antonio. Each site will cost $26 million and cover 245,000 square feet, featuring one-story buildings with colocation racks for other companies.

Construction is set to begin between March and April of 2027, with completion expected by May 2029. This expansion contributes to Texas's trajectory as the world's largest data center market by 2030, driven by demand for hyperscale and AI technologies. The region has faced drought issues, raising concerns about water usage for cooling.