Microsoft is moving faster than any other cloud provider in building AI-ready data centers. The company now operates more than 400 facilities across 60-plus Azure regions, and it added 1 gigawatt of new capacity in just one quarter of FY2026. The company plans to nearly double its data center space by 2027 and to invest USD 80 billion through 2028 in AI-optimized infrastructure, custom chips, and sovereign clouds.

The largest upcoming data center projects of Microsoft include the Wisconsin Data Center Development in Mount Pleasant, the Boyd Farms Data Center in North Carolina, the Castroville campus in Texas, the Rangareddy District Data Center Development near Hyderabad, and the UAE expansion in partnership with G42 through Khazna Data Centers. 

This article profiles five upcoming Microsoft data centers for 2026 and explores them in detail, including timelines, scale, investment size, and their role in Microsoft’s global cloud strategy.

List of Top 5 Upcoming Data Center Projects of Microsoft 2026

Wisconsin Data Center Development

Microsoft is building the world’s most powerful AI data center in Mount Pleasant, Wisconsin, as part of Project Fairwater. The first facility is on track to go live in early 2026 as part of an initial USD 3.3 billion investment, and Microsoft has committed an additional USD 4 billion to construct a second datacenter of similar scale, bringing the total investment in Wisconsin to more than USD 7 billion. 

The upcoming data center in Wisconsin will house hundreds of thousands of advanced NVIDIA GPUs connected by ultra-high-speed fiber. More than 90 percent of the campus uses a closed-loop liquid cooling system to reduce water consumption and relies on outside air cooling. In January 2026, Microsoft also submitted plans for 15 additional data centers at the same site, with an investment of USD 13 billion for build-out focused on large-scale AI computing.

Boyd Farms Data Center Development

The Boyd Farms Data Center is a Microsoft-developed facility planned for Catawba, North Carolina. The project occupies 292 acres of land at 1260 Old Maiden Road near Zeb Haynes Road in Maiden, spanning Catawba and Lincoln counties. Construction started on April 1, 2024, with Morgan Construction Company serving as the general contractor. 

The facility forms part of Microsoft’s broader expansion in North Carolina following its 2022 commitment to invest at least USD 1 billion in building four data centers in Catawba County over the next decade. The Boyd Farms project strengthens Microsoft’s regional cloud and data infrastructure footprint in the southeastern United States.

Castroville Campus (SAT 82)

Microsoft is planning a USD 400 million data center project in Castroville, Texas, known as SAT 82. The facility will be located at 2580 Farm to Market Road 471 North, west of San Antonio, and is expected to begin construction in mid-August 2026, with completion targeted for June 2028. 

The one-story campus will span 195,670 square feet and include Tier II IDF and Tier II AZNG network infrastructure. This project forms part of Microsoft’s expanding footprint in Castroville, where the company is already developing data centers labeled SAT 80 and SAT 81 at 8844 Farm-to-Market Road, along with additional buildings proposed at 2995 US Highway 90 West.

SAT 82 adds to Microsoft’s broader data center ecosystem across the San Antonio region, where the company already operates or is building facilities at Wiseman Boulevard, Lambda Drive, Westover Link, and Rogers Road. The investment builds on Microsoft’s long-term presence in Texas, which began with the launch of its South Central US Azure region in 2008, followed by a dedicated US Gov Texas Azure region in 2017.

Rangareddy District Data Center Development

Microsoft has acquired 48 acres of land near Hyderabad in a deal valued at around INR 267 crore to expand its data center footprint in India. The site, located roughly 40 kilometers from the city, will host the Mekaguda data center. 

The project strengthens Microsoft’s presence in the country by adding to its existing three data center regions in Pune, Mumbai, and Chennai, while complementing its long-running India Development Centre in Hyderabad that supports global product engineering and innovation.

According to plans prepared by AECOM, Microsoft’s infrastructure consultant, the Mekaguda facility will create about 180 direct jobs once fully operational. The center will support growing demand for cloud, AI, and digital services across India, reinforcing Hyderabad’s role as a strategic technology hub in Microsoft’s global infrastructure network.

Microsoft–G42 Khazna Data Center Expansion

Microsoft and international neocloud provider G42 are expanding the UAE’s digital infrastructure by adding 200 megawatts of data center capacity through Khazna Data Centers, a G42 subsidiary. 

The project forms part of Microsoft’s larger USD 15.2 billion investment in the UAE and is expected to begin coming online before the end of 2026. The expansion strengthens Microsoft Azure’s secure, scalable, and sovereign cloud presence in the region while supporting the UAE’s national goal to double the digital economy’s contribution to GDP over the next decade.

Conclusion

Microsoft’s data center roadmap points clearly toward AI dominance, deeper regional presence, and integration with national digital strategies. The company is scaling multi-gigawatt AI campuses in the US while expanding capacity in India, Southeast Asia, Europe, and the Middle East. Projects like Fairwater in Wisconsin, Mekaguda in Hyderabad, and the UAE Khazna expansion show how Microsoft blends cloud growth with local economic development and workforce creation.

Over the next two years, Microsoft plans to nearly double its global data center footprint and add more than 4 GW of new capacity. It is prioritizing AI-optimized infrastructure, including next-generation NVIDIA GPUs and its own Maia chips, alongside wind-powered and water-efficient sites.

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