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Wednesday, June 7, 2006

Microsoft eyes Texas for data center

SAN ANTONIO EXPRESS-NEWS

SAN ANTONIO -- Microsoft Corp. is considering San Antonio for a $600 million data center that would bring the tech industry's best-recognized name to the city and generate up to 100 jobs, two local officials close to the negotiations said.

The software maker is looking at San Antonio and at least one other Texas city -- Austin -- for the center, which would store company data on scores of computer servers, said the officials, who declined to be named because of the sensitivity of the talks.

Company officials exploring the deal have visited San Antonio three times.

Another source said Jones Lang LaSalle, an international real estate services and money management company based in Chicago, is working on Microsoft's behalf and looking at sites in the area.

Though the operation wouldn't boast a big payroll, people in San Antonio's small but growing tech sector said an investment from an industry behemoth such as Microsoft would boost the city's image.

A Microsoft spokeswoman declined to comment on the company's site selection effort, data storage operations and future expansion.

Microsoft has asked the city and Bexar County for 10-year tax abatements for the planned 470,000-square-foot center, according to the two people familiar with negotiations.

If Microsoft decides to locate the center here, it would be the company's second recent investment in San Antonio. In April, the company opened a 20-employee office to serve the city's growing corporate base.

Companies such as Microsoft and Yahoo are seeking more data storage space as they allow customers of their online services to archive more e-mail and post photos.

Microsoft broke ground last week on a 75-acre data storage facility in Quincy in Grant County.

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