Data center project · Chelan County, Washington

Microsoft Malaga data center campus

Under construction · A Microsoft campus near the old Alcoa plant in Malaga, planned for three buildings, with a Chelan PUD contract that sets a maximum authorized demand of 288 MW.

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Status
Under construction · as of Aug. 21, 2026
Location
Malaga, off Malaga Alcoa Highway · Chelan County
Status note
Chelan PUD said Microsoft built a facility in the county in 2025; Cascade PBS reported in August 2026 that land was being cleared for another building, with three planned.
Power
288 MW
Maximum authorized demand in Chelan PUD's 15-year large-load service agreement (Aug. 1, 2025, to July 31, 2040); a contract ceiling, not measured use. Cascade PBS reported Microsoft's figure of up to 150 MW at full operation, so stated figures range from 150 to 288 MW. A separate surplus supply was capped at 18 MW for August-December 2025.
Land
100 acres
Investment
Microsoft paid about $86.5 million up front for the Jumpoff Ridge substation and related work; land bought from the port for about $9 million (2022 terms).
Developer and team
Microsoft
End user
Microsoft
Utility
Chelan County PUD (Microsoft said energy would come from a third-party supplier)
Water
The port is developing wells, a reservoir and water line extensions that the Malaga Water District will own and run, with Microsoft paying; Microsoft says its direct evaporative cooling uses water less than 5% of the year.
Evidence
Primary public records
Size class
50 MW or more (tracker scope)
Map position approximate, from the reported address or area. Updated Oct. 17, 2026.

Updates, newest first

  1. Aug. 21, 2026 Cascade PBS reported bulldozers clearing land for another Microsoft building at the site, where three are planned, and cited Microsoft's figure of up to 150 MW at full operation. (Cascade PBS, Aug. 21, 2026)
  2. Dec. 1, 2025 In its minority report to the state workgroup, Chelan PUD said Microsoft built a new facility in Chelan County in 2025. (Washington Department of Revenue, Dec. 1, 2025)
  3. June 16, 2025 Chelan PUD commissioners approved a large-load contract with a maximum authorized demand of 288 MW from Aug. 1, 2025, to July 31, 2040, renewing automatically for five-year terms, plus up to 18 MW of surplus power through December 2025; Microsoft paid about $86.5 million up front for the Jumpoff Ridge substation, which the PUD will own. (Chelan County PUD, June 16, 2025; Chelan County PUD, June 17, 2025; News Radio 560 KPQ, June 17, 2025; DatacenterDynamics, June 18, 2025)
  4. June 2, 2025 Chelan PUD staff presented a large-load power supply framework and a proposed Microsoft contract to commissioners. (Chelan County PUD, June 2, 2025)
  5. May 2023 Microsoft's town hall materials showed one building in the first phase, three at full build-out, and the first building finished in fall 2025. (Microsoft, May 1, 2023)
  6. May 12, 2022 KPQ reported that Microsoft agreed to buy about 100 acres near the former Alcoa plant from the Chelan Douglas Regional Port Authority in two phases, for roughly $9 million. (News Radio 560 KPQ, May 12, 2022)

Conflicts and open questions

  • Power figures differ: 288 MW is the contract's maximum authorized demand; 150 MW is Microsoft's figure for full operation, as reported by Cascade PBS.
  • Chelan PUD said in June 2025 that the power source for 2026-2040 had not been determined; Microsoft said a third-party supplier would provide it.

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