Microsoft withdraws plans for $1 billion data centers in Licking County

In a surprising turn of events, Microsoft has announced that it will not proceed with its ambitious $1 billion investment to build three data centers in Licking County, Ohio. The decision, confirmed on April 7, 2025, marks a significant shift in the tech giant’s infrastructure expansion strategy and comes weeks after it announced that it wouldn’t proceed with building data centers in Europe either.

According to the reports, the project, initially revealed in October 2024, was set to include facilities in New Albany, Heath, and Hebron. These data centers were expected to serve as critical components for Microsoft’s Azure cloud computing platform, addressing the growing demand for data storage and cloud technology. Construction was slated to begin this summer, with completion projected for December 2027.

Despite the cancellation, Microsoft has pledged to honor its development agreements, including funding roadway and utility upgrades. The company also plans to ensure that the land at two sites can be repurposed for farming. Additionally, Microsoft remains committed to supporting local communities through initiatives focused on digital skills development and restoration efforts.

Local officials, including New Albany Mayor Sloan Spalding, have expressed an understanding of the challenges associated with large-scale projects. Spalding emphasized the city’s continued engagement with Microsoft throughout the process.

While the decision to halt the Licking County projects may disappoint some, Microsoft has assured stakeholders that it will continue to evaluate these sites in accordance with its investment strategy.