Microsoft committed $1 billion capex for new datacenter construction and infrastructure development in North Carolina.

Microsoft has committed to invest $1 billion in a four data center campus in Catawba County, North Carolina, located just north of the city of Charlotte. The investment is to be spread equally across three counties in the area, with the data center sites spanning the cities of Hickory (176 acres), Maiden (292 acres), and Conover (219 acres).

This move reflects broader trends in data center site selection, where local government tax incentives play a decisive role in attracting hyperscale operators. In response to Microsoft's interest, Catawba County extended a series of grants designed to bring the technology company to the region. In exchange for at least 50 new jobs and $1 billion of development across three of its cities, Catawba County approved grants of property to Microsoft over the next 10 years.

According to Scott Millar, president of Catawba County Economic Development Corp, the tax incentive structure works as follows: "Over that period, local governments will essentially pay back that portion of Microsoft's property taxes. Real property tax covers charges paid on the buildings and real estate of the new centers, while personal property tax will be paid on equipment like the computers and servers inside." This arrangement allows the county to attract major infrastructure investment while managing the immediate fiscal impact.

Microsoft guaranteed it would invest $332 million in each of the three areas with an additional $33 million going to the city of Hickory for an additional campus, distributing the overall $1 billion commitment across the region's designated sites.