Microsoft’s Malaga data center expansion raises questions over water, power

Microsoft’s Malaga data center expansion raises questions over water, power

News ClipThe Wenatchee World·Malaga, Chelan County, WA·11/1/2026

Microsoft is developing a data center campus in Malaga, Washington, with three approximately 210,000-square-foot buildings planned and up to six possible at the site. The expansion is raising questions about electricity demand and a $50 million water-system expansion serving Microsoft and district customers.

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Microsoft
Gov: Chelan County PUD, Wenatchee Valley Fire Department

Microsoft officials hosted a tour of the company’s second data center building in Malaga, Washington, while construction continued. The campus is planned to include three buildings of about 210,000 square feet each, with the first expected to begin operating within days, the second in late fall, and the third in 2027. Microsoft could ultimately build as many as six buildings at the site.

The project includes extensive electrical and network infrastructure and is prompting scrutiny of its power and water needs. A $50 million expansion of the Malaga water system has begun to serve Microsoft’s campus and other district customers. Chelan County PUD officials and local fire department representatives participated in the community event and site tour.