Microsoft Delays $1 Billion Ohio Data Center Project Citing Trump Tariffs, Alters Construction Timeline

Microsoft is hitting pause on its highly anticipated $1 billion data center project in Licking County, Ohio, as rising costs driven by Trump’s new tariffs shake up major tech infrastructure plans.

Originally scheduled to begin this summer, the project included three data centers across New Albany, Heath, and Hebron. But Microsoft confirmed this week it’s postponing construction at all sites except New Albany, citing shifts in its investment strategy tied to cost pressures, many of which stem from recent tariffs impacting construction materials and technology imports.

The delays mean the company won’t be moving forward with immediate development in Heath and Hebron. However, Microsoft says it will keep the land available for farming for now and still plans to fulfill infrastructure commitments like road and utility upgrades in the area.

Microsoft’s New Albany site will still undergo early preparations, but the overall build schedule has been adjusted. The 245,000-square-foot data center—once expected to be complete by late 2027—will now move forward more slowly.

The original plan was projected to create at least 30 full-time jobs and contribute significantly to local tax revenues thanks to large-scale tech investment. Microsoft had already secured a 15-year property tax abatement in New Albany to support the development.

Local leaders say they remain hopeful the full project will resume in time, but acknowledge the slowdown is a setback. Cities like Heath and Hebron are using the pause to reevaluate community strategies and adjust expectations as the tech landscape shifts.

Microsoft’s retreat from the original timeline is part of a broader pullback the company is making nationwide, as global supply chain issues and policy changes, including U.S. tariffs on imported tech infrastructure, impact long-term investments.

While the delay affects job creation in the short term, Microsoft says it’s still committed to the region and will support community programs and digital skills training as part of its broader strategy.

The company’s Ohio project was meant to help expand its cloud platform, Microsoft Azure, as demand for data storage continues to rise. If fully developed, the data campuses still have the potential to generate hundreds of jobs in the coming years.

For now, construction is paused, but the promise of the project remains on the table, waiting on more stable conditions and a revised timeline.