Microsoft is reportedly considering the Texas Research Park in San Antonio as a site for a massive data center campus.

Several sources have told Pudget Sound Business Journal that the company is looking to buy between 75 and 100 acres to build one of its largest facilities in the US.

However, the sources also said San Antonio is one of two possible locations – the second being in another state - so nothing is set in stone.

Competing on taxes

Texas research Park entry

Microsoft already owns two data centers in San Antonio: the 470,000 square foot facility in Westover Hills and a 250,000 square foot facility in West Side, currently under construction and expected to open next year.

Since 2013, Texas has been attracting data center developers through generous tax breaks. These are mostly aimed at large single-tenant projects - exactly the type of facility Microsoft wants to build.

The US states that offer similar tax incentives include Arizona, Oregon, North Carolina, Iowa, Missouri, Ohio and Virginia.

According to the Business Journal, Microsoft’s existing facilities in San Antonio have received 40 to 63 percent property tax reimbursement over 15 years.

Earlier this week, RagingWire and its parent company NTT Communications announced they will be building a million square foot data center in Texas, near the City of Garland.