Microsoft breaks ground on new data center in San Jose

Microsoft breaks ground on new data center in San Jose

News ClipNBC Bay Area·San Jose, Santa Clara County, CA·6/11/2026

Microsoft has broken ground on a 48-megawatt data center campus in San Jose's Alviso neighborhood, marking its first purpose-built, company-owned facility in the city. The project aims to support growing demand for cloud computing and AI, with construction expected to create over 600 jobs. The facility will utilize 100% recycled water for cooling and renewable energy, also providing power back to the grid.

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Gov: City of San Jose

Microsoft has commenced construction on a 48-megawatt data center campus in San Jose, California's Alviso neighborhood. This marks the company's first purpose-built, owned, and operated data center in the city, intended to meet the growing demands of cloud computing and artificial intelligence, according to Jonathan Noble, Microsoft's senior director of government affairs.

The project is being constructed by HITT Contracting, with its senior vice president, John Kane, stating that the facility will create over 600 jobs during peak construction. Once operational, the data center is expected to support more than 100 ongoing jobs, as highlighted by San Jose Mayor Matt Mahan, who emphasized the critical role of data centers as modern infrastructure for services like healthcare, transportation, and AI.

City officials and Microsoft representatives underscored the facility's commitment to sustainability, noting its planned use of 100% recycled water for cooling and reliance on renewable energy. The data center is also designed to provide power back to the electrical grid during peak demand periods. Construction is anticipated to conclude within approximately 18 months.