Microsoft Changes Construction Schedule and Postpones $1 Billion Ohio Data Center Project Due to Trump Tariffs

Microsoft has put a halt to its much-anticipated $1 billion data center project in Licking County, Ohio, as significant plans for tech infrastructure are being disrupted by increased prices brought on by Trump’s new tariffs.

Three data centers in New Albany, Heath, and Hebron were part of the project, which was initially set to start this summer. However, Microsoft announced this week that it is delaying development at all but New Albany sites, citing changes in its investment plan linked to cost concerns, many of which are caused by recent tariffs that affect imports of technology and building materials.

The corporation will not be forward with immediate development in Heath and Hebron due to the delays. Microsoft, however, states that it will continue to maintain the land for farming for the time being and aims to repair the local utilities and roads.

Although the overall build timetable has been modified, early preparations will still be made at Microsoft’s New Albany location. Once anticipated to be finished by late 2027, the 245,000-square-foot data center will now proceed more slowly.

Large-scale tech investment was expected to generate at least 30 full-time employment and make a substantial contribution to local tax revenues under the original plan. In order to facilitate the development, Microsoft had already obtained a 15-year property tax abatement in New Albany.

Although they agree the pause is a setback, local authorities say they are still optimistic that the entire project will resume on schedule. As the tech landscape changes, cities like Heath and Hebron are taking advantage of the pause to reassess community efforts and modify expectations.

As long-term investments are impacted by global supply chain concerns and regulatory changes, including as U.S. taxes on imported digital infrastructure, Microsoft is pulling back from the initial timeframe as part of a larger national retreat.

Microsoft claims that despite the short-term impact on job creation, it remains committed to the area and will continue to fund community initiatives and training in digital skills as part of its larger plan.

As the need for data storage keeps growing, the company’s Ohio initiative was intended to aid in the expansion of its cloud platform, Microsoft Azure. The data campuses still have the potential to provide hundreds of employment in the upcoming years if they are completely developed.

Construction is currently on hold, but the project’s potential is still there while it awaits more stable circumstances and an updated schedule.