Company will invest $64 million to establish software development and R&D regional hub
Richmond, VA — Governor Ralph Northam today announced that Microsoft Corp. will invest $64 million to establish a new software development and R&D regional hub, which will create 1,500 new jobs. The company will occupy 400,000 square feet in the Reston Town Center in Fairfax County for its new location, anticipated to be ready for employees in summer 2021. The plans include a new retail space for engaging directly with customers. Governor Northam met with Microsoft on an economic development mission at its headquarters in Washington in 2019.
“Virginia, like the rest of the nation, is facing unprecedented job loss due to COVID-19, so this announcement couldn’t come at a better time,” said Governor Northam. “Microsoft Corp. and Virginia share a strong history, and we are proud that this major operation in Fairfax County will add to the company’s significant job count across our Commonwealth. Virginia is a leader in the information technology industry, and Microsoft’s continued investment here is a testament to our top-ranked business climate, infrastructure, and world-class workforce.”
Microsoft has had a presence in Virginia since 2002, with corporate locations in Reston and the Richmond area as well as an enterprise data center in Mecklenburg County.
“Microsoft is a valued corporate partner, and we are excited to see the company expanding its footprint at its new software and R&D regional hub in Fairfax County,” said Secretary of Commerce and Trade Brian Ball. “The creation of 1,500 new, well-paid jobs is obviously very welcome news during these economically challenging times. The demand for cloud services is steadily increasing, and Microsoft’s newest operation will serve its growing customer base while developing cutting-edge software and creating 21st-century tech jobs.”
Established in 1975 and headquartered in Redmond, Washington, Microsoft is a publicly held corporation with revenues surpassing $125 billion and nearly 156,000 employees worldwide. The company enables digital transformation for the era of an intelligent cloud and an intelligent edge.
“One of Microsoft’s core principles is actively listening to our customers, so we can build and improve our technology based on their feedback. Being close to our customer base is extremely important to our ongoing collaborations,” said Terrell Cox, general manager at Microsoft. “We’ve had a presence in Reston for many years now, and this expansion will allow Microsoft to deliver even more solutions from a region known for its innovation and passion for technology.”
The Virginia Economic Development Partnership worked with the Fairfax County Economic Development Authority and the General Assembly’s Major Employment and Investment (MEI) Project Approval Commission to secure the project for Virginia. Microsoft will be eligible to receive a MEI custom performance grant of $22.5 million, to be paid post-performance, subject to approval by the Virginia General Assembly. Microsoft plans to utilize the custom performance grant to fund partnerships with local college and universities to develop the tech talent pipeline for cloud computing and related degrees to support its local expansion.
“Microsoft can choose from any number of technology hubs for its operations, and we are so pleased that the company chose to expand its operations in Fairfax County and Northern Virginia,” said Victor Hoskins, President and CEO of the Fairfax County Economic Development Authority. “Because of our wealth of technology talent and the tech ecosystem here, this area is a great match for the company’s talent needs as well as its business goals.”
“Reston is proud to welcome Microsoft’s expansion in our Town Center,” said Senator Janet Howell. “Microsoft Corp. has been an important corporate citizen for many years. The decision to grow here is yet more proof that our region is a major technology hub.”
“I am thrilled that Microsoft has chosen to locate this significant operation and create 1,500 new jobs in Fairfax County,” said Delegate Kenneth Plum. “The Commonwealth and the County have a longstanding relationship with Microsoft, and this operation will only strengthen it. We look forward to welcoming the software development and R&D regional hub to the Reston Town Center.”