Microsoft has suspended plans to build three data centers across Ohio, marking the latest in a series of global project cancellations. The company told the Columbus Dispatch it would retain the sites for potential future development.
The $1 billion investment, announced in 2024, included locations in New Albany, Heath, and Hebron. Microsoft had already secured land, obtained construction approvals, and negotiated initial tax incentives. Construction was set to begin in mid-2025.
The Ohio cancellation follows similar moves worldwide. In recent months, Microsoft has halted or postponed data center projects in Indonesia, the UK, Australia, and multiple U.S. states. The company has also withdrawn projects across Europe and the Asia-Pacific region. Analysts point to several factors behind these decisions, including power supply constraints, graphics card availability issues, and declining demand for AI services.
Shifting priorities in AI infrastructure
Microsoft describes these changes as a strategic adjustment. CEO Satya Nadella anticipates an excess of computing capacity in coming years, leading to price decreases. This outlook suggests a more conservative approach to AI expansion. While Microsoft continues to invest approximately $80 billion in infrastructure during the current fiscal year, the company signals it will reduce spending in the following year.
The company's partnership with OpenAI appears to influence these decisions. As OpenAI continues major computing investments through partnerships with Oracle, Softbank, and CoreWeave, Microsoft's return on investment remains uncertain. Products like Copilot haven't met expected adoption rates, suggesting these project suspensions might indicate a broader shift in Microsoft's AI strategy.
