Microsoft came to Fargo six years ago, when the software giant purchased Fargo-based Great Plains Software.
Many of the employees in Microsoft's business division now work in Fargo. The company currently has about 950 full-time employees at its Fargo campus.
Microsoft officials say construction of a new 120,000-square-foot building will allow room for another 575 employees.
That construction project is the first phase of what Microsoft officials say will be a long-term expansion of their Fargo operation.
Microsoft says planned future construction will bring the number of employees at its Fargo campus to 3,800.