Microsoft Pauses $1 Bln Ohio Data Center Amid AI Demand Reassessments

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(RTTNews) - Microsoft is putting the brakes on several data center projects, including a $1 billion development in Licking County, Ohio, as it reevaluates the infrastructure needed to support its growing cloud and AI operations.

The tech giant confirmed it will halt early-stage construction on the Ohio sites, reserving two of the three parcels for farmland instead.

The Ohio pause is part of a broader trend. Microsoft previously delayed the next phases of a major Wisconsin data center and, according to analysts at TD Cowen, has also scaled back some international plans and canceled U.S. data center leases. Industry experts tie the shift, in part, to Microsoft's evolving relationship with OpenAI, which recently gained more independence to build its own infrastructure.

Rising costs, driven by steep tariffs on imported tech equipment under the Trump administration, have further complicated expansion plans. Microsoft's Ohio investment, originally set to begin construction in July, was expected to create hundreds of constructions and permanent jobs.

Despite the setback, Microsoft says it will honor existing agreements for road and utility upgrades and remains committed to investing over $80 billion globally in AI infrastructure this fiscal year.

Local leaders expressed disappointment, noting the potential loss of jobs and economic momentum in a region also attracting investments from Google, Meta, and Intel.