HEATH, Ohio (WCMH) -- Microsoft has confirmed that it is backing down on building data centers in Licking County.
In a statement released Monday, the company did not give a reason for stopping the projects, only to say the decision was made “after careful consideration.”
Microsoft owns more than 700 acres of land in the county, including 227 acres on Thornwood Drive in Heath was set to be the site of one of the data centers, which was announced last May. The company first purchased 197 acres in New Albany in June 2023.
“After careful consideration, we will not be moving forward at this time with our plans to build data centers at the Licking County sites,” the statement reads.
Microsoft said it is taking “appropriate steps” to make sure the land for two of its sites are used for farming. It also said it will continue with its agreements to pay for road and utility upgrades.
“We will continue to invest in and collaborate with local organizations to support digital skills development, restoration efforts, and to strengthen the communities in Licking County for future generations,” the statement reads.
The New Albany project is one of the two announced projects that has been halted; Mayor Sloan Spalding said Microsoft has been open with city officials about the project's progress.
“The City of New Albany has been informed by Microsoft that it is revising its build schedule for the planned data center development within the New Albany International Business Park,” Spalding said in a statement. “We understand that large-scale projects like this require flexibility, and we appreciate Microsoft’s continued engagement with the City throughout this process.”
In October, New Albany City Council granted Microsoft a 100% property tax abatement for 15 years.
In a statement posted to Facebook, the Village of Hebron said Microsoft will retain ownership of its land and "remain committed to infrastructure investments." The company owns approximately 200 acres of land on the 100 block of High Street.
The move comes as the biggest tech project in central Ohio – Intel’s chips manufacturing plant in New Albany – announced it is falling behind on initial projections on when the factory would open.
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