Microsoft bought about 65 acres in northern San Jose in 2017 for approximately $73.2 million. City records describe a planned two-building data-center campus on a 64.5-acre project site, with about 396,914 square feet of space and a maximum electrical load of 99 megawatts. Microsoft said work began in fall 2025; a June 2026 report said the company had broken ground.
What Microsoft bought and what San Jose approved
The land is near Alviso-Milpitas Road in northern San Jose. The approximately 65-acre purchase figure and $73.2 million price refer to Microsoft’s 2017 land acquisition. San Jose’s project record gives the project site as approximately 64.5 acres; the figures describe the same general development but come from different records.
The city record describes two data-center buildings totaling approximately 396,914 square feet and sets a maximum electrical load of 99 MW. These are project specifications, not a confirmed statement of the campus’s actual operating demand or annual electricity use.
| Figure | What it describes | Source and qualification |
|---|---|---|
| Approximately $73.2 million | Microsoft’s land purchase | 2017 purchase, as reported by c001 |
| Approximately 64.5 acres | Project site | San Jose city project record, c002 |
| Approximately 396,914 square feet | Planned data-center buildings | San Jose city project record, c002 |
| Maximum electrical load of 99 MW | Project’s listed maximum electrical load | San Jose city project record, c002; this is not an annual energy-use figure |
When construction began
Microsoft said work began in fall 2025 with earthmoving and soil remediation. A June 2026 report described the project as having broken ground. Those accounts indicate the project moved into site work and construction, but they do not establish a completion or opening date.
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What the project may be used for
The campus expands Microsoft’s self-owned cloud infrastructure in Silicon Valley and may support AI workloads. Microsoft describes AI data centers generally as facilities used for training and inference, but it has not published a final workload mix for this specific campus. The 99 MW maximum listed in the city record does not, by itself, reveal which computing workloads will run there.
What is known about nearby effects
Reports said people living near the site were told to vacate nearby land. San Jose’s project record also describes planned road and utility improvements. The available project details do not establish the full scope or timing of those changes or quantify their effects on neighboring residents.
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What the reported price does—and does not—tell you
The approximately $73.2 million figure is the price Microsoft paid for the land in 2017. It is not the project’s total construction cost, a current valuation of the property, or a measure of Microsoft’s eventual operating expenses. No authoritative final construction cost or confirmed opening date has been published in the available reports.
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