Microsoft Secures Land Rezoning Approval for Potential Nevada Data Center Expansion December 24, 2025 Microsoft has received a key regulatory approval to consolidate and reconfigure a significant landholding in Nevada, a move widely seen as a precursor to a major data center campus development in a state that is rapidly becoming a critical hub for digital infrastructure. The Lyon County Planning Commission has approved Microsoft's application to merge and resubdivide six parcels of land it owns in Silver Springs, Nevada, into three larger lots. The tech giant originally purchased the 274-acre site in January 2023 for $16.425 million. According to the approved plan, the land will be restructured into parcels of 223.18 acres, 32.6 acres, and 18.7 acres. While Microsoft has not publicly confirmed its specific plans for the property, the company's actions align with its ongoing cloud infrastructure expansion. At the time of the land purchase, a Microsoft spokesperson stated the company was "continuing to expand [its] cloud infrastructure." The parcels, located at 1200 W Hwy 50 and adjacent to the Silver Springs Airport, are zoned for neighborhood-commercial or employment use. Senior planner Lewis Cariella noted that any future development on the site would require roadway and utility improvements, and the terrain has an average slope of around four percent, reaching up to 20 percent in northern areas. This approval represents a strategic step for Microsoft, which does not yet operate a cloud region in Nevada. The broader Reno-Sparks area has attracted significant investment from other tech giants, including Switch, Apple, eBay, and Google. The activity in Silver Springs is particularly intense; in September 2025, data center developer Tract acquired 1,060 acres of land just north of Microsoft's parcels for a potential 1.6-gigawatt campus. Furthermore, in April of this year, Microsoft purchased an additional 300 acres in the nearby Victory Logistics District in Fernley for $70.5 million, though its purpose was not specified. The series of land acquisitions and now zoning approvals underscore Nevada's growing appeal for hyperscale data center development, driven by factors such as available land, competitive power costs, and proximity to major West Coast markets. Microsoft's latest regulatory milestone positions it to potentially launch a substantial build-out, intensifying competition in a key emerging data center corridor. Source: datacenterdynamics
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