Microsoft has broken ground on its Alviso data center campus in San Jose, California.

Set to offer 48MW of data center capacity, the site will be Microsoft's first self-owned and operated data center in the city.

The data center is currently slated to be completed in 2028. An estimated 600 construction jobs will be generated during the project, and 100 ongoing jobs once operational.

HITT Contracting is constructing the facility.

“This campus marks another milestone in building the infrastructure behind today’s digital economy,” said Trevor Coffey, EVP at HITT Contracting. “With our partners at Microsoft, we’re delivering a complex, mission-critical project that will support technological growth and create lasting investment and opportunity for the San Jose community.”

“We’re proud to mark this milestone as we advance another phase of our data center development,” added Jonathan Noble, senior director of Infrastructure government affairs at Microsoft. “These projects extend beyond physical infrastructure; they reflect long-term partnerships with communities that support and help shape them. Through ongoing investment, collaboration, and engagement, we are committed to contributing positively to the regions where we operate.”

The data center campus is located at 1657 Alviso-Milpitas Road. The property was previously being used as a homeless encampment, with people living on the site reportedly told to vacate in April last year.

Microsoft bought a 64-acre site next to the road in 2017 for $73.2 million, with plans to build a campus with two data center buildings. Planning permission was granted in April 2025.

The campus is one of two sites Microsoft has under development in San José. In 2022, it announced it was planning to build on a 22-acre land parcel near the intersection of Orchard Parkway and Component Drive, which it purchased for $78m in May 2021.

Microsoft operates its West US region from California. The region does not offer availability zone support. Earlier this year, the region experienced a power interruption, impacting availability.