Microsoft delays $1 billion Ohio data center project, citing Trump tariffs, changing construction schedules

Microsoft delays billion Ohio data center project, citing Trump tariffs, changing construction schedules

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Microsoft stopped pauses in the highly anticipated $1 billion data center project in Licking County, Ohio, as costs driven by Trump's new tariffs have risen, facilitating major technology infrastructure programs that will begin this summer. The project includes three data centers in new Albany, Heath and Hebron. But Microsoft confirmed this week that its investment strategies are linked to cost pressures in all locations except New Albany, many of which stem from tariffs that affect imports of building materials and technology. The company will not move forward in the immediate development of Heath and Hebron. However, Microsoft said it will keep land available for the time being and still plans to meet infrastructure commitments such as road and utilities upgrades in the region. Microsoft's new Albany website will still be in early preparations, but the overall build plan has been adjusted. The 245,000-square-foot data center (which is expected to be completed by the end of 2027) will now be slower. The original plan is expected to generate at least 30 full-time jobs and make a significant contribution to local tax revenues due to large-scale technology investments. Microsoft has received a 15-year property tax relief in New Albany to support the development. Local leaders said they still hope the entire project will be restored in time, but acknowledged that the slowdown was a setback. Cities such as Heath and Hebron are using pauses to reevaluate community strategies and adjust expectations as the technology landscape changes. Microsoft's retreat from the original timeline is part of the company's wider national pullback as global supply chain issues and policy changes, including delays in urgent tariffs, including import infrastructure. As part of its broader strategy, the region will support community programs and digital skills training. The company's Ohio project is designed to help expand its cloud platform Microsoft Azure, as demand for data storage continues to rise. If fully developed, the data campus still has the potential to generate hundreds of jobs in the coming years. Now, construction has been suspended, but the project’s commitment is still on the table, awaiting more stable conditions and a revised schedule.

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