LICKING COUNTY, Ohio — In a significant shift, Microsoft announced it is pausing plans to build three massive data center campuses in central Ohio, citing strategic investment considerations amid changing industry dynamics, according to the Columbus Dispatch.
The tech giant had originally committed to investing $1 billion in facilities located in New Albany, Heath, and Hebron. On Monday, the company confirmed it will not move forward with construction at this time but emphasized that it still owns the land and may resume the project in the future.
While no updated timeline has been provided, Microsoft said it remains committed to its presence in the region. The company plans to ensure that the land at two of the three sites remains viable for farming and will proceed with previously agreed-upon infrastructure upgrades, including improvements to roads and utilities.
The original plans called for one building at each of the three campuses, with the potential for multiple structures at each location. Microsoft’s initial investment included $700 million in construction costs and $300 million in equipment, with 20 jobs expected in the early phase and the potential for hundreds more as the campuses expanded.
The move comes as Microsoft reconsiders its broader data center footprint. According to a recent Reuters report, the company has ended leases representing hundreds of megawatts of data center capacity in the U.S., signaling a possible overbuild as the company races to scale its infrastructure to support artificial intelligence technologies.
Locally, the rapid growth of data centers has raised environmental concerns, particularly around energy consumption. American Electric Power projected that Ohio’s electricity demands could rival those of Manhattan by 2030 due to the influx of energy-intensive facilities.
Despite the pause, Microsoft says it will continue investing in the local community through digital skills training and environmental restoration.
