NEW ALBANY, Ohio (Diya TV) — Microsoft has shelved its ambitious $1 billion plan to build three data centers in Licking County, Ohio, a move that could cost the local economy up to 1,000 jobs and $150 million in annual revenue.
The company announced Monday it will not proceed with the project, which included campuses in New Albany, Heath, and Hebron, just five days after the U.S. announced new tariffs on Chinese technology imports. Microsoft cited “careful consideration of the shift in economic forecasting” as its reason for halting the project, adding that it may reevaluate the sites if conditions improve.
While Microsoft will maintain ownership of the land, it plans to convert most of it to agricultural use for the foreseeable future, generating no new jobs. The company stated it will honor commitments to fund infrastructure projects and community development initiatives despite the construction halt.
“We sincerely appreciate the leadership and partnership of Ohio government officials and the support of Licking County residents,” a Microsoft spokesperson said in a statement. “We will continue to invest in and collaborate with local organizations to support digital skills development, restoration efforts, and to strengthen the communities in Licking County for future generations.”
The pullback comes amid broader reports of Microsoft slowing data center expansions globally. According to analysts at TD Cowen, the company may be adjusting its infrastructure investments due to concerns about oversupply and changing demand forecasts.
Originally announced in October 2024, the first phase of the Licking County project included a $420 million, 245,000-square-foot data center in New Albany on nearly 200 acres of land. The development was set to begin construction in July 2025 and finish in late 2027. At full capacity, the three sites were expected to create between 400 and 600 construction jobs and at least 540 permanent positions.
New Albany Mayor Sloan Spalding acknowledged Microsoft’s shift in plans but emphasized the city’s ongoing relationship with the tech giant. “We understand that large-scale projects like this require flexibility, and we appreciate Microsoft’s continued engagement with the City throughout this process,” he said.
City officials across Licking County expressed a mix of disappointment and cautious optimism. Heath Mayor Mark Johns said he remains hopeful Microsoft will eventually resume development on the site there. “You’re not out of something you didn’t have,” Johns told the City Council. “What we do have is commitment to help finance some very important infrastructure projects in our community.”
Hebron Mayor Valerie Mockus echoed similar sentiments, calling the delay an opportunity to reset and engage more deeply with local residents. “In some ways, I think it may be a blessing for us to really regroup and make sure that our strategy is exactly on point,” Mockus told local station 10TV.
The decision represents a significant setback for the region, which had offered Microsoft a 15-year, 100% property tax abatement to support the development. Despite the delay, economic development leaders are still optimistic. One Columbus, the organization representing regional economic interests, noted that Microsoft’s decision aligns with a broader trend of recalibrated investments.
“The Columbus Region is committed to working with great companies like Microsoft over the long term,” said Kenny McDonald, president and CEO of One Columbus. “We realize that the build-out of these centers and the associated infrastructure will take time and have some starts and stops along the way.”
While Meta and Google have successfully launched data centers in the region, Microsoft’s pause leaves a noticeable gap in what had been an expanding hub for cloud infrastructure in central Ohio. For now, the sprawling land parcels in Heath and Hebron will remain farmland, and New Albany will begin only limited site preparation work.
As the demand for cloud computing and storage continues to grow, local leaders are watching closely for signs of Microsoft’s return—while preparing for a longer wait.
