Powering the next wave of AI: Expanding capacity with our new datacenter in Pecos

Today, Microsoft is announcing one of the largest single capacity additions in our history. In Pecos, Texas, we will build a new datacenter campus, expanding our global datacenter capacity by approximately 2 gigawatts (GW) to meet strong and sustained customer demand for AI and cloud services across industries and regions. Beyond the technology, this is a major investment in West Texas. We expect to support over 6,000 construction jobs at peak build-out and to create hundreds of permanent operational jobs that will add a new industry that supports the local economy when the new datacenter campus is operational.

This multibillion-dollar datacenter campus investment over the next five to seven years reflects both the immediate needs we are seeing today and the future trajectory of AI and advanced compute, where reliable infrastructure at scale is essential to unlocking the next generation of innovation. This expansion is grounded in a simple principle: we build where our customers need us, and we build for the long term. We have a track record of doing exactly that in Texas. In the San Antonio region, where we have operated datacenters for nearly a decade, our investment has generated billions of dollars in local economic activity and supported thousands of local jobs. We are committed to delivering the same lasting value in Pecos.

Meeting customer demand with reliable infrastructure

Customer demand for AI and cloud services continues to grow rapidly, from startups building new applications to governments, healthcare providers and educational institutions modernizing critical systems. Meeting this demand requires not only more datacenter capacity, but capacity that is predictable, resilient and able to scale quickly.