The announcement came ahead of the company's annual shareholders meeting today.
Microsoft's decision to expand on the footprint of its campus in Redmond, Washington, its home since 1986, is in contrast to the highly-publicized office expansion plans of Seattle-based Amazon.
Amazon has been looking at cities across North America for a spot to build a second headquarters that will be as big at its Seattle hub.
Microsoft Corp currently employs about 47,000 people in 125 buildings in Washington's Puget Sound region. It says its project will include renovations and new construction and will take 5 to 7 years.
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