Microsoft Corp. has put a hold on its plan to invest $1 billion in building three data centers in central Ohio, just a few months after pausing plans for a $3.3-billion data center project in Wisconsin.
In late October, Microsoft had announced plans to expand its cloud infrastructure by constructing data centers in New Albany, Hebron, and Heath, all located east of Columbus in Licking County, Ohio. The first project, a $420-million, 245,000-square-foot data center on a 197-acre site in New Albany, was set to begin construction this year, with a completion date targeted for 2027. Ames Construction was hired as the general contractor, and preliminary land clearing began in late 2022.
However, the company has now decided to pause its plans for these sites. Microsoft confirmed in a statement that it would not proceed with the Licking County data center projects at this time, but it would continue to evaluate the sites as part of its broader investment strategy. While the Hebron and Heath sites will be used for agricultural purposes, the New Albany land will remain on hold for potential future development.
“We are taking the necessary steps to ensure that the land at two of our sites can be used for farming, and we are honoring our agreements to fund roadway and utility upgrades,” the company said.
While the reasons behind the delay are unclear, Noelle Walsh, president of Microsoft Cloud Operations + Innovation, stated on LinkedIn that planning for data centers takes years and adjustments to early-stage projects in rapidly growing industries are to be expected. “Any significant new endeavor at this size and scale requires agility and refinement as we learn and grow with our customers,” she explained. “What this means is that we are slowing or pausing some early-stage projects.”
Despite the pause in Ohio, Microsoft’s global expansion continues, with the company’s $80 billion plan to build AI-powered data centers worldwide still on track for fiscal 2025. Walsh emphasized that these investments are driven by both short-term and long-term demand.
In response to the delay, Heath Mayor Mark Johns reassured the community that the village’s 15-year effort to build an industrial corridor isn’t reliant on a single project. “We’re not out what we didn’t have,” he said, adding that the village is still committed to funding important infrastructure upgrades.
Licking County Commissioner Tim Bubb criticized Microsoft’s statement as vague, pointing to a reevaluation of data storage needs and market conditions. “Pausing to reevaluate the market,” he said, “and now they’re not ready to spend on construction of new facilities.”
Despite the setbacks in Ohio and other locations like Indonesia, the UK, Australia, Illinois, and North Dakota, Microsoft’s cloud operations remain strong, with more than 350 data centers worldwide. “While we may strategically pace our plans, we will continue to grow and allocate investments that stay aligned with business priorities and customer demand,” Walsh added.
