Microsoft is building a new datacenter campus in Pecos, Texas, expanding its capacity by approximately 2 gigawatts to meet growing demand for AI and cloud services.

What happened

Microsoft announced a multibillion-dollar datacenter campus in Pecos, Texas, over the next five to seven years that will expand global datacenter capacity by approximately 2 gigawatts. The company expects to support over 6,000 construction jobs at peak build-out and create hundreds of permanent operational jobs. Microsoft will fund the energy infrastructure required to power the datacenter.

What to watch

The project reflects Microsoft's "Community First" approach, which includes three priorities: early community engagement through meetings and ongoing communication; creating local economic opportunity through workforce development and small-business support (building on programs like the Datacenter Academy near San Antonio, which has reached more than 450 students); and partnering for community impact through education and nonprofit support. The company has contracted 4.7 gigawatts of renewable electricity for its electricity use in Texas and plans to deploy closed-loop cooling systems to minimize water usage.