Microsoft is stepping up plans for phase 2 of its data center complex in Malaga. 

The tech giant is spending almost $12.5 million to buy acreage owned by the Chelan Douglas Port Authority.  

Microsoft Phase 2 Malaga - from CDRPA
Microsoft Phase 2 Malaga - from CDRPA

Port Director of Economic Development & Capital Projects Stacie de Mestre says the purchase is part of an even larger land mass Microsoft will acquire. 

"We'd previously agreed to this option to sell the property to Microsoft," said de Mestre. "They're just wanting to close early on some of the property." 

Microsoft is already building data center buildings on adjacent land known as Phase 1 and will have room for up to six buildings when all the phase 2 properties are acquired. 

Microsoft Phase 1 Malaga - from CDRPA
Microsoft Phase 1 Malaga - from CDRPA

The company plans to close on five of the nine parcels in phase 2 by the end of May. 

They include: 

  • Kemah Management Property - $ 1,511,136.00 
  • Shaffer Property - $ 2,380,760.00 
  • Adcock Property - $ 1,527,496.00 
  • Malaga Springs Property - $ 5,503,742.00 
  • Hays Property - $ 1,707,043.25 

Mestre says there'll be a slight delay in the remaining four parcels on phase 2 because they’re currently occupied. 

"There's a few parcels on there that had homes," de Mestre. "We do still have a few people living in them. Our agreement with them was that they could stay until the end of May until their new home was ready." 

Two of the properties still have people living in trailers. Once those residents are gone, the trailers will be removed, and testing will be done for asbestos. 

After the testing, those properties will be freed up for purchase by Microsoft. 

They include: 

  • C. and C. Quilter Property - $ 945,227.00
  • J. and M. and M. Quilter Property - $ 775,227.00
  • Schoenwald Property - $ 675,227.00 
  • Baker Property - $ 880,000.00 

In addition, a land exchange is being done between the Port and the Firing Range Association for the final portion of 185 acres in phase 2. 

The Port spent $1 million earlier this year to buy land near the Big Y highway intersection in Peshastin with an eye on the Firing Range Association moving onto that parcel. 

The total purchase price for the phase 2 acreage will be almost $16 million. 


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Gallery Credit: Mark Rattner with KPQ Newsradio 560

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