CyrusOne is deepening its investment across Texas with plans to develop a new $500 million data center campus in the San Antonio metropolitan area, further strengthening one of the fastest-growing digital infrastructure markets in the United States. The project marks another milestone in the company’s long-term expansion strategy as hyperscale demand continues reshaping secondary data center markets beyond traditional hubs. The new campus also reflects how operators are positioning capacity closer to enterprise and cloud customers while maintaining access to Texas’ extensive energy and fiber infrastructure.
The announcement comes as large-scale infrastructure developers continue accelerating investments to support AI, cloud computing, and enterprise digital transformation. According to a filing submitted to the Texas Department of Licensing and Regulation, the planned development will be located at 3397 US Highway 90 West in Castroville, west of downtown San Antonio. The project carries an estimated construction value of $500 million and represents another significant capital investment by the Dallas-headquartered operator. Site selection in Castroville expands CyrusOne’s geographic footprint within the broader San Antonio market while adding another large-scale campus to its statewide portfolio. The location also positions the company to participate in continued infrastructure growth across South Texas.
Construction Timeline Targets Mid-2027 Completion
The facility, identified in regulatory filings as SAT14A, will encompass approximately 460,000 square feet (42,735 square meters). Construction is scheduled to begin in December 2026, with completion targeted for June 2027. Project documentation does not disclose the planned IT capacity or critical load for the campus. The filing also confirms that no customer or tenant has yet been assigned to the facility, suggesting CyrusOne is developing the site in anticipation of future hyperscale or enterprise demand. While tenant details remain undisclosed, the scale of the investment reflects growing confidence in long-term infrastructure requirements across Texas. Large operators increasingly develop campuses ahead of customer commitments to reduce deployment timelines once leasing agreements materialize. This strategy has become more common as cloud providers and AI infrastructure companies seek faster access to new computing capacity. Meanwhile, regional markets with available land and expanding utility infrastructure continue attracting new investment.
Sixth San Antonio Campus Expands Regional Portfolio
Once operational, SAT14A will become CyrusOne’s sixth data center campus in the San Antonio region and its 11th facility across Texas. The expansion builds on an established regional presence that already includes multiple operational campuses serving enterprise and hyperscale customers. The company’s San Antonio portfolio currently includes:
- SAT1, a 9MW facility located at 9999 Westover Hills Boulevard
- SAT2-SAT3, a combined 36MW campus at 9554 Westover Hills Boulevard
- SAT4, located at 9655 Raba Drive
- SAT5-SAT6, an 18MW campus at 14719 Omicron Drive
The addition of SAT14A further increases CyrusOne’s concentration in one of Texas’ fastest-growing secondary digital infrastructure markets. Rather than expanding into a new geography, the company is reinforcing an existing ecosystem where operational expertise, network connectivity, and infrastructure investments already support future growth.
Expansion Strategy Continues Across Multiple Regions
The Castroville announcement follows several recent expansion milestones for CyrusOne. Earlier this month, the company broke ground on a new data center campus in Freestone County, approximately 90 miles south of Dallas. That development extended CyrusOne’s investment beyond established metropolitan areas while supporting future hyperscale deployment across central Texas. Additionally, the company recently secured approval to redevelop the former Honey Monster Factory site in West London into a new data center campus. The project highlights CyrusOne’s broader international growth strategy as demand for cloud and AI infrastructure continues rising across Europe alongside North America. Taken together, these projects illustrate an expansion approach focused on securing strategic sites before market demand reaches full maturity. Developers increasingly compete for power availability, permitting certainty, and long-term land options, making early site acquisition an important competitive advantage.
San Antonio Gains Momentum as a Secondary Data Center Market
San Antonio continues strengthening its reputation as one of Texas’ emerging digital infrastructure markets. Although Dallas remains the state’s largest data center ecosystem, operators increasingly view San Antonio as an attractive alternative because of available development land, expanding fiber connectivity, and access to regional enterprise customers. Several major cloud providers have already established a presence in the market. Microsoft operates multiple data centers in the region and has recently filed plans for two additional facilities near the city. Amazon Web Services currently maintains one operational facility in the area and is widely believed to be evaluating two additional developments that could further expand its regional footprint. The increasing concentration of hyperscale infrastructure demonstrates how secondary markets are becoming integral to long-term capacity planning. As AI workloads require larger campuses and greater power availability, operators are diversifying beyond traditional markets while remaining close to major enterprise and cloud ecosystems.
Texas Continues to Anchor Large-Scale AI Infrastructure Growth
Texas remains one of the most active destinations for hyperscale data center investment in North America, supported by abundant land, business-friendly policies, extensive fiber networks, and comparatively strong access to power infrastructure. The state’s combination of economic growth and digital demand continues attracting billion-dollar infrastructure commitments from both cloud providers and colocation operators. For CyrusOne, the Castroville campus represents more than another facility on the map. It reinforces a strategy centered on building regional clusters that can support future customer growth while creating operational efficiencies across interconnected campuses. As AI infrastructure requirements continue accelerating, campus-based expansion strategies like SAT14A are expected to play an increasingly important role in how operators scale capacity across high-growth markets.
