This is the latest in a series of cancellations of Microsoft's data center projects. Recent reports indicate that the company has withdrawn up to 2GW of data center projects in the United States and Europe. Soon after, there were reports that data center projects in Asia Pacific and the United Kingdom had also been canceled.
As early as October 2024, Microsoft announced plans to invest $1 billion in building a data center park in central Ohio.
At that time, the New Albany data center park had received $420 million in special funding, and the city council approved a 15-year tax break for Microsoft in the same month.
The data center is planned to occupy 245,000 square feet (22,800 square meters) on a 200-acre site between Beech Road and the Licking-Franklin county line, north of Fitzwilliam Lane NW, with construction scheduled for July 2025.
The exact locations of the Heath and Hebron data centers have not been announced, but Microsoft has previously purchased 227 acres along Thornwood Drive in Heath and 223 acres on High Street in Hebron. Construction on the Heath development is scheduled to begin in the summer of 2025, and construction on the Hebron data center is scheduled to begin in 2026.
A Microsoft spokesperson told The Columbus Dispatch of the decision to withdraw the Ohio project: "We will continue to evaluate these sites based on our investment strategy. We sincerely appreciate the leadership and cooperation of Ohio government officials and the support of Licking County residents."
The company later added that it will continue to own the land and plans to continue developing it at an unspecified time in the future. In the meantime, two of the sites will remain suitable for farming and the company is moving forward with agreements for road and utility upgrades.
Speculations about Microsoft canceling the data center project are increasing, and there is a lot of discussion from the outside world. Brokerage firm TDCowen was the first to pay attention to this matter. The company's analysts speculated that "lease cancellations and capacity deferrals indicate that data centers are oversupplied relative to current demand forecasts."
Microsoft's stance has so far remained unchanged, with the company providing the publication with the following blanket statement: "Thanks to the significant investments we have made to date, we are well-positioned to meet current and growing customer demand. Last year alone, we added more capacity than any year in our history. While we may strategically We will continue to maintain strong growth in all regions. This allows us to invest and deploy resources to promote future growth. Our plan to invest more than $80 billion in infrastructure this fiscal year remains on track and we will continue to grow at a record pace to meet customer demand."