Late last month, Chelan County PUD took a significant stride towards the construction of an $86 million substation in Malaga, aimed at powering the forthcoming Microsoft data campus. PUD commissioners approved the purchase of seven capacitor banks at a total cost of approximately $4 million for the Microsoft data center. PUD Spokesperson Rachel Hansen highlighted that the capacitors would enhance power factor compensation, leading to more efficient power delivery. Specific details were withheld due to substation security concerns. The Jumpoff Ridge Substation will be situated on the Microsoft campus on the 5300 block of Malaga Alcoa Highway. Groundbreaking is scheduled for the fall, and completion is expected by the end of 2025.
The early order of capacitors was necessary to ensure timely delivery due to extended lead times. Microsoft has already covered the costs associated with the substation, including equipment and contractor resources. The metal-enclosed capacitors will generate 360 megawatts for Microsoft's data center, encompassing at least three buildings across roughly 105 acres.
The data center campus is currently in its initial development phase, involving clearing and demolishing buildings. The first building's construction will begin in May 2024 and is expected to conclude in early 2026. The timing for constructing the other two datacenter buildings will be determined based on customer demand for Microsoft cloud services.