COLUMBUS, Ohio — Microsoft has halted its plans to construct data centers in central Ohio, the company announced Monday, pausing a $1 billion project in Licking County.
The tech giant had intended to develop three data center campuses in New Albany, Heath, and Hebron, with an initial investment comprising $700 million for construction and $300 million for machinery. The project was expected to create 20 jobs initially, with the potential for hundreds more as the campuses expanded.
Microsoft stated it will retain ownership of the land and plans to resume the project in the future, though no timeline was provided. The company also committed to allowing farming on two of the three sites and honoring development agreements to fund local roadway and utility improvements.
The data centers were designed to bolster Microsoft’s cloud infrastructure and accommodate the global surge in digital services, according to information shared with economic development leaders. Each campus was slated to start with one building, with room for additional structures later.
The decision comes amid reports from Reuters that Microsoft has terminated leases for significant data center capacity across the U.S., totaling hundreds of megawatts, suggesting a possible oversupply as the company ramps up artificial intelligence infrastructure. Analysts attribute this shift to a broader skepticism among investors about the slow returns on massive AI investments by tech firms, especially as competitors like Chinese startup DeepSeek demonstrate cost-effective AI advancements.
The proliferation of data centers in the region has raised concerns about electricity consumption. American Electric Power projects that Ohio’s power demand, driven by such facilities, could rival that of Manhattan by 2030.
Microsoft emphasized its ongoing commitment to supporting Licking County through investments in digital skills development, restoration efforts, and community strengthening initiatives.