Microsoft has paused its plans to build data centers in Licking County, Ohio.

The company told the Columbus Dispatch that it was no longer moving forward with its previous plans to invest $1 billion in three data center campuses in New Albany, Heath, and Hebron.

This is the latest in a series of data center project cancellations from Microsoft, with reports recently emerging that the company had pulled back on as much as 2GW of data center projects across the US and Europe. Shortly after, it was further reported that cancellations also occurred in APAC and the UK.

Microsoft announced plans to invest $1 billion in data center campuses in Central Ohio back in October 2024.

At the time, $420 million was earmarked for the New Albany data center campus, with the City Council approving a 15-year tax abatement for Microsoft that same month.

That data center was planned to span 245,000 sq ft (22,800 sqm) on a 200-acre site, located between Beech Road and the Licking-Franklin county line, north of Fitzwilliam Lane N.W, with construction to begin in July 2025.

The location of the Heath and Hebron data centers were not specified, but Microsoft previously purchased 227 acres along Thornwood Drive in Heath, and 223 acres on High Street in Hebron. Construction of the Heath development was slated to begin in the summer of 2025, and the Hebron site in 2026.

Speaking to the Columbus Dispatch about the decision to pull back on the Ohio projects, a Microsoft spokesperson said: "We will continue to evaluate these sites in line with our investment strategy. We sincerely appreciate the leadership and partnership of Ohio government officials and the support of Licking County residents."

The company later added that it will continue to own the land and intends to proceed with the development at some unspecified time in the future. In the meantime, land at two of the sites will be kept in a state that allows it to be used for farming, and the company is moving forward with its agreements for roadway and utility upgrades.

Speculation over Microsoft's ever-growing list of canceled data center projects has been rife. Brokerage TD Cowen first brought attention to the matter, with analysts from the company speculating that the "lease cancellations and deferrals of capacity points to data center oversupply relative to its current demand forecast.”

Thus far, Microsoft's stance has been unmoving, with the company providing the following blanket statement to publications: "Thanks to the significant investments we have made up to this point, we are well positioned to meet our current and increasing customer demand. Last year alone, we added more capacity than any prior year in history. While we may strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions. This allows us to invest and allocate resources to growth areas for our future. Our plans to spend over $80bn on infrastructure this FY remains on track as we continue to grow at a record pace to meet customer demand."

DCD has reached out to see if this remains the company's position.

Update -

Since initial publication, Microsoft Cloud president Noelle Walsh has posted on LinkedIn regarding the company's data center strategy.

Walsh reiterated that the company is on track to meet its capex commitment for the year, adding: "Data center planning is a multi-year and capital-intensive program we plan for years in advance to ensure we have sufficient infrastructure in the right places. In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history.

"By nature, any significant new endeavor at this size and scale requires agility and refinement as we learn and grow with our customers. What this means is that we are slowing or pausing some early-stage projects. While we may strategically pace our plans, we will continue to grow strongly and allocate investments that stay aligned with business priorities and customer demand."