January 23, 2007 — (WEB HOST IDNUSTRY REVIEW) — Software giant Microsoft (microsoft.com) announced this week it will build a $550 million data center in San Antonio, Texas.
According to reports, the San Antonio city council approved a 10-year, 100 percent tax abatement worth $20.7 million and voted to provide Microsoft with $5.2 million from the CPS Energy economic development fund. That money will pay for electrical infrastructure for a 470,000 square-foot structure that will be nearly as big as the Alamodome, says reports.
A representative at Microsoft says the two-building complex will operate around the clock and will power Web hosting, as well as email and instant messaging servers. The company expects the facility to bring in approximately 75 high-tech jobs. When fully operating in a few years, it will become the biggest customer of CPS Energy, which supplies more than 25 percent of the city’s budget.
Reports add that some council members expressed concern about giving an abatement to one of the world’s most successful companies with $44 billion in annual revenue.
Microsoft also announced yesterday that it is one of the companies chosen by Wal-Mart to build out the retail giant’s Web operations.
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