Chelan Douglas Port Authority Speeds Up Process for Microsoft Data Center

Another step is being taken for Microsoft to build a cloud data center in Malaga.

The Chelan Douglas Regional Port Authority this week OK'ed the purchase of a second parcel of land to complete the 102.5-acre footprint planned for the six building center.

The Port is purchasing the land from GBI Holding Co. for $1.9 million with a plan to sell it to Microsoft.

The purchase was originally scheduled to close in September but will likely now be completed in July.

The Microsoft cloud data center will support a range of services, such as the Teams videoconferencing program.

The 23 acres being purchased is designated to house a cooling water system for the center.

Port CEO Jim Kuntz is convinced Microsoft will quickly follow through to buy the land after closing on it's $6.6 million purchase of all the other land included in the project Friday.

"We just got a check for $6.8 million from Microsoft, so I don't think they're going anywhere," said Kuntz.  "And they definitely need a cooling water area. They gave me the green light yesterday."

The Port also approved the expansion of the Malaga Water District’s water system, which will be needed for the Microsoft data center.

Kuntz thinks the sheer size of the center will make Microsoft a major contributor to property and sales taxes in the county, as well as jobs.

The Chelan PUD recently finalized an agreement to let the planned center connect with its power lines, another step in getting the project going.

Microsoft is also building a data center near Pangborn Airport in Douglas County, and already has a large footprint in Quincy.