Microsoft Likely to Build Data Center in Malaga After Port Sale

Microsoft is buying more than 100 acres of land in Malaga that'll likely be a future site of one of its data centers.

The Chelan Douglas Regional Port Authority is selling the land to Microsoft in two phases, after it acquired several chunks of property in Malaga over the past couple of years.

Port Authority Commissioner Rory Turner thinks the transaction is historical for the region.

"These two deals that yoiu guys put together, that bunch of staff over there, will be the largest investment in our region in history," said Turner. "It’s pretty incredible."

Microsoft will pay more than $9 million for the land, which is near the site of the former Alcoa Wenatchee Works plant.  It's not known when Microsoft will break ground on the property.

Phase I in the transaction is the Lojo Property, which is 72.5 acres at 5375 Malaga Alcoa Highway. Microsoft will purchase the land for about $6.6 million, after the port purchased the Lojo site in 2020 for $1.4 million.

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.

Commissioners confirmed in a meeting Tuesday that Microsoft would use Malaga Water District water.