Microsoft shelves another $1bn data center project as tariff fears rise
- Microsoft will “not be moving forward at this time” with its Ohio data centers
- Work was meant to start as early as July 2025
- Other projects also reportedly cancelled
Microsoft has reportedly put its plans for new data center campuses in New Albany, Heath and Hebron in Ohio on hold amid economic concerns relating to tariffs.
Speaking to The Register, Microsoft reportedly confirmed that it would “not be moving forward at this time with our plans to build datacenters at the Licking County sites” due to a strategic investment review, but that it would “continue to evaluate these sites in line with our investment strategy.”
The halt doesn’t mark the complete ditching of Microsoft’s plans, though, with Redmond retaining its possession of the land for potential future developments.
Microsoft’s data center plans impacted by tariffs
Microsoft continued to confirm to The Register that it would facilitate farming at two of its sites in a welcome development to the areas’ biodiversities and economies, and that it would also continue with its infrastructure plans to develop roads and other utilities to boost the regions.
The plans first came about in October 2024, just a couple of months before Trump took office, with $420 million allocated for New Albany and work originally set to start in July 2025. Microsoft’s Heath and Hebron sites were set for their construction phases later in 2025 and 2026, with the three locations promising hundreds of direct jobs as well as other opportunities relating to development and construction. Its three projects were set to cost Microsoft $1 billion.
Separate Data Centre Dynamics reporting also alleges that Microsoft has backed out of as much as 2GW of data center projects in the US and Europe, alongside further cancellations in APAC and the UK.
Among the key potential drivers was that steel and aluminium imports were hit with 25% tariffs in March 2025, and while Trump may have reversed some tariffs just this week, market volatility continues, as does Microsoft’s cautious approach.
TechRadar Pro asked Microsoft for further commentary on the matter but we did not receive an immediate response.
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Microsoft will “not be moving forward at this time” with its Ohio data centers Work was meant to start as early as July 2025 Other projects also reportedly cancelled Microsoft has reportedly put its plans for new data center campuses in New Albany, Heath and Hebron in Ohio on hold…
