Microsoft Enters Agreement With Port Authority to Build Large Data Center

Microsoft is another step closer to building a data center near the former Alcoa plant in Malaga.

The tech giant and the Chelan Douglas Regional Port Authority signed off this week on a purchase-and-sale agreement on a roughly 100 acres site.

Port CEO Jim Kuntz says Microsoft is scheduled to purchase the land in two phases once it's satisfied the property meets expectations.

"The purchase and sale agreement has contingencies in it," said Kuntz. "So Microsoft right now is reviewing the condition of the property, making sure that utilities can be extended to the property. And then once they wave contingencies, they'll actually formally purchase the property."

The Microsoft Cloud Computing Division would build the data center in what the Port anticipates will be a very large investment for Chelan County.

The tech giant will pay roughly $9 million for the property.

The first phase would take place on June 15.

Phase I is the Lojo Property, 72.5 acres at 5375 Malaga Alcoa Highway. Microsoft will pay a $195,000 deposit before the final purchase price of about $6.6 million. The port purchased the Lojo site in September 2020 for $1.37 million.

The second phase would close in September.

Phase II includes the close by Curtis and Torres properties - 20 and 10 acres respectively on Malaga Alcoa Highway - which Microsoft will purchase for roughly $2.6 million. The port bought both properties within the past several months.

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

"We're hoping that hundreds of new jobs, family wage jobs will be created with this investment."

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