Nearly a decade after acquiring the site, Microsoft has broken ground on a 48-megawatt data center in north San Jose to support growing demand for cloud services and AI. The 397,205-square-foot, two-building project is planned to be completed in 2028, with HITT serving as the general contractor, reported the Silicon Valley Business Journal.
“This building represents critical infrastructure,” said Jonathan Noble, Microsoft’s senior director of infrastructure government affairs at a groundbreaking event on June 10. “It’s not simply the jobs that will be happening here. It’s not simply, the facility itself. It is really a baseline for critical infrastructure compute that we all rely on every day, both in our personal lives as well as our economy.”
The project site is located at 1657 Alviso-Milpitas Rd. in San Jose’s Alviso neighborhood. Microsoft acquired the 65-acre site for $73 million in 2017; the San Jose Planning Commission approved the project in April 2025.
