Microsoft is spending $12.5 million on five parcels of land for Phase II of its data center project in Malaga, Washington.

Microsoft acquired the adjacently located 72.5-acre plot, named the Lojo property, earlier this year- known as Phase I of the project.

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– Google Maps

First reported by KPQ, Phase II is set to see Microsoft close on a total of nine parcels of land named the Curtis and Torres properties. The land totals 30 acres and is owned by the Chelan Douglas Port Authority.

However, only five out of nine parcels are currently available for purchase.

Stacie de Mestre, port director of economic development and capital projects, said the council authority is experiencing a delay in vacating the tenants from the remaining four parcels of land. However, the sale is still expected to go ahead in the coming months.

Microsoft has planned three buildings in the plot acquired in Phase I, and is set to build two more in Phase II of the project. The first three buildings on the first plot of land are scheduled for completion by late 2025.

The Port has authorized spending up to $1.3 million for components needed to extend a 5,000-foot-long water line from Saturday Avenue to the 72-acre Lojo Property.

Microsoft announced in 2022 that it planned to acquire more than 100 acres of land in Malaga, Chelan County.

Malaga is around 20 miles (32km) from Quincy, where Microsoft has a number of data centers.

Microsoft plans fourth facility in nearby Pangborn

In neighboring Douglas County, Microsoft is planning a fourth facility in Pangborn, East Wenatchee, according to county documents.

The Columbian reported the one-story 237,000 sq ft (22,000 sqm) building will be on the lot adjacent to the existing three facilities, on Urban Industrial Way.

Microsoft declined to answer questions on its data center buildings, according to the report.

Only one of the three existing facilities is completed and began operations in December 2022. The 244,440 sq ft (22,700 sqm) building was most recently valued at $409 million. The second and third buildings, both under construction, are valued at $47.1 million each.

Microsoft first acquired the 170-acre plot in East Wenatchee in 2020. The company has plans to build six facilities in Pangborn in total.

Microsoft reimbursed Douglas County Public Utility District (PUD) in 2022 for building a new substation for its data centers.