A $400 Million Data Center Is Coming to Medina County — Here's What It Means for Local Real Estate

A major technology investment is headed to the doorstep of San Antonio, and if you own property, rent housing, or are thinking about buying or selling in this region, it deserves your attention. Plans call for a $400 million data center spanning roughly 195,670 square feet to be built along FM 471 North, about five miles west of Castroville in Medina County. Construction is slated to run from August 2026 through July 2028, and the company behind the project already controls more than 1,400 acres across Medina County.

Projects of this scale do not arrive quietly. They bring construction crews, permanent technical and operations staff, security personnel, and a long chain of contractors and vendors who need places to live. That ripple effect tends to move fastest in communities closest to the site — and in this case, that means Castroville and the surrounding Medina County towns, but also western San Antonio and communities along the US-90 and Loop 1604 corridors that connect the area to the broader metro.

For buyers, the window before construction begins in August 2026 is worth taking seriously. Castroville and nearby communities like Lytle, Natalia, and Hondo are already attracting buyers priced out of Bexar County, and added employment pressure from a project this size could accelerate that trend. Neighborhoods in far west San Antonio — particularly those in the 78023, 78245, and 78252 ZIP codes near Alamo Ranch and Culebra Road — are already well-positioned as gateway communities between Bexar and Medina counties. If workforce demand grows as the project takes shape, those areas could see increased competition for available homes.

The Northside Independent School District serves much of the western Bexar County corridor that feeds toward Medina County, and the Medina Valley Independent School District covers Castroville and surrounding communities. Both districts are worth watching. Families relocating for long-term employment tend to research schools carefully, and neighborhoods within strong school districts historically hold value better when large employers move into a region.

For sellers in the affected corridors, this news adds a reasonable long-term argument for current pricing — though it is important to be clear-eyed. Construction does not begin until August 2026, and the facility will not be complete until mid-2028. The market impact will likely build gradually rather than arrive all at once. If you are thinking about listing a home in Castroville, the 78009 ZIP code, or western Bexar County communities within 20 to 30 minutes of the site, this development may add weight to your pricing conversation with your agent, but it is not a reason to overprice or to rush an ill-timed sale.

Investors and landlords should pay close attention to the rental market implications. Data center construction projects employ a significant number of skilled trades workers over multi-year build timelines. Those workers need housing, and many prefer to rent rather than buy during a job assignment. Single-family rentals and small multifamily properties within a reasonable commute of FM 471 North — including those in Castroville itself, in Leon Valley, and along the US-90 and Culebra Road corridors — could see sustained rental demand from mid-2026 through the completion of the facility in 2028. After that, permanent staff typically settle into the area more permanently, which can support continued rental and for-sale demand.

For homeowners with no immediate plans to buy or sell, this is simply good news for the long-term stability of the western San Antonio market. Large capital investments of this magnitude signal confidence in regional infrastructure, available land, and long-term economic outlook. When a company commits more than 1,400 acres in a county adjacent to Bexar, it is making a decade-long bet on this part of Texas. That kind of institutional confidence often draws additional businesses, contractors, and service providers in its wake.

The practical advice right now is straightforward. If you are a buyer interested in western Bexar County or Medina County communities, talk to an agent familiar with those submarkets before activity picks up ahead of the August 2026 construction start. If you are an investor, begin evaluating rental property opportunities now, because properties near high-profile employment projects tend to get more expensive to acquire once the news is fully absorbed by the market. If you are a seller, keep your expectations grounded in today's market conditions while recognizing that the medium-term outlook for your area has improved.

San Antonio's real estate market has shown consistent resilience, and investments on this scale are part of the reason why. This one is worth watching closely.