Microsoft suspends another billion-dollar data center project amid rising tariff concerns.

Microsoft has decided to pause its plans to build new data centers in Ohio, specifically in New Albany, Heath, and Hebron, due to economic concerns related to commercial tariffs. This decision is part of a strategic review of investments, although the company plans to continue evaluating these sites in line with its investment strategy. However, this does not mean that Microsoft is completely abandoning its plans, as it retains ownership of the land for possible future developments.

The data center projects had been announced in October 2024, with an initial investment of $420 million for New Albany and construction expected to start in July 2025. Work in Heath and Hebron was scheduled to begin in 2025 and 2026, generating hundreds of direct jobs in addition to other related development and construction opportunities, with an estimated total cost of $1 billion.

Additionally, reports indicate that Microsoft has canceled data center projects totaling up to 2GW in the United States and Europe, as well as in APAC and the UK. Among the factors influencing this decision are the 25% tariffs imposed on steel and aluminum imports since March 2025. Although some of these tariffs have recently been reversed, uncertainty in the markets persists, and Microsoft is maintaining a cautious approach.

On the other hand, the company has announced that it will promote agriculture at two of its sites, which will benefit biodiversity and local economies, and will continue to develop infrastructure such as roads and public utilities in the affected regions.