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Released April 09, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) is pulling back on plans to develop three data center sites in Licking County, Ohio, located northeast of Columbus, as the company recently has done with other plans for data centers in the U.S. and elsewhere.
Microsoft had plans to build facilities in New Albany, Heath and Hebron, with development of the New Albany and Hebron sites to start this summer, followed by the Heath site in 2026. Microsoft announced that it initially would invest $1 billion in the three data centers, which would have been followed by further development of the sites. Industrial Info estimates that with six data center buildings at each site, the total investment for the three facilities would have been more than $7 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the related project reports.
But Microsoft isn't cancelling the data centers outright; the company is just pushing the possibility of their development further into the future. Microsoft will retain ownership of all three sites. It intends to proceed with site preparation in New Albany (although not construction) but has said it will ensure the acreage in Heath and Hebron will be kept in a state that allows it to be used for farming.
While the data centers were supposed to bring some jobs to the region, all is not lost for Licking County: Microsoft has said that it intends to fulfill agreements for roadway and utility upgrades.
Some may be breathing a sigh of relief regarding Microsoft's pullback. Ohio is seeing an influx of data centers, which could cause strain on the existing power grid. Late last year, Ohio's largest power provider, American Electric Power (NASDAQ:AEP) (AEP) (Columbus, Ohio), proposed to Ohio's Public Utilities Commission that data centers and cryptocurrency-mining facilities above a certain power threshold be obligated to pay for at least 85% of the energy they expect to need each month, even if they use less, to cover the cost of infrastructure needed to bring additional power.
The Columbus area and New Albany in particular have become hotspots for data center development. Industrial Info is tracking more than $56.5 billion in underway and proposed data center projects throughout Ohio, more than $53 billion of which is located Ohio Market Zone 3, which includes the Greater Columbus area. Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) has been underway with a data center project in New Albany for a few years, and Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) is constructing a multi-building complex in the area. Other data center developers either already at work on or planning facilities in New Albany include Google Incorporated (Mountain View, California), Vantage Data Centers (Denver, Colorado), Quality Technology Services (Overland Park, Kansas), EdgeConneX Incorporated (Herndon, Virginia) and others. Click here for a listing of all active data center projects in and around New Albany.
In addition, New Albany is where Intel Corporation (NASDAQ:INTC) (Santa Clara, California) is building two power-hungry semiconductor fabrication centers, amounting to some $28 billion in aggregate spending. Subscribers can learn more by viewing the related project reports.
AEP has more than $1.7 billion worth of power transmission projects planned in Ohio, but according to Industrial Info's records, little actual generation. While a 950-megawatt (MW) natural gas-fired power center is going up in northeast Ohio near the Pennsylvania border, the majority of the state's power developments under construction come from solar power. Industrial Info is tracking four solar power projects that are presently under construction in Greater Columbus, the largest of which comes from Invenergy LLC (Chicago, Illinois), with whom Meta Platforms has a power purchase agreement in place for at least one Ohio facility. Construction on Invenergy's Pleasant Prairie solar farm kicked off last year and is expected to be completed this fall, when the plant will begin ramping up toward 250 MW of generation, new power that will be sorely needed in the Columbus area as the region's new data centers are switched on. Subscribers to Industrial Info's Power Project Database can click here for more details on the project.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Microsoft had plans to build facilities in New Albany, Heath and Hebron, with development of the New Albany and Hebron sites to start this summer, followed by the Heath site in 2026. Microsoft announced that it initially would invest $1 billion in the three data centers, which would have been followed by further development of the sites. Industrial Info estimates that with six data center buildings at each site, the total investment for the three facilities would have been more than $7 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the related project reports.
But Microsoft isn't cancelling the data centers outright; the company is just pushing the possibility of their development further into the future. Microsoft will retain ownership of all three sites. It intends to proceed with site preparation in New Albany (although not construction) but has said it will ensure the acreage in Heath and Hebron will be kept in a state that allows it to be used for farming.
While the data centers were supposed to bring some jobs to the region, all is not lost for Licking County: Microsoft has said that it intends to fulfill agreements for roadway and utility upgrades.
Some may be breathing a sigh of relief regarding Microsoft's pullback. Ohio is seeing an influx of data centers, which could cause strain on the existing power grid. Late last year, Ohio's largest power provider, American Electric Power (NASDAQ:AEP) (AEP) (Columbus, Ohio), proposed to Ohio's Public Utilities Commission that data centers and cryptocurrency-mining facilities above a certain power threshold be obligated to pay for at least 85% of the energy they expect to need each month, even if they use less, to cover the cost of infrastructure needed to bring additional power.
The Columbus area and New Albany in particular have become hotspots for data center development. Industrial Info is tracking more than $56.5 billion in underway and proposed data center projects throughout Ohio, more than $53 billion of which is located Ohio Market Zone 3, which includes the Greater Columbus area. Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) has been underway with a data center project in New Albany for a few years, and Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) is constructing a multi-building complex in the area. Other data center developers either already at work on or planning facilities in New Albany include Google Incorporated (Mountain View, California), Vantage Data Centers (Denver, Colorado), Quality Technology Services (Overland Park, Kansas), EdgeConneX Incorporated (Herndon, Virginia) and others. Click here for a listing of all active data center projects in and around New Albany.
In addition, New Albany is where Intel Corporation (NASDAQ:INTC) (Santa Clara, California) is building two power-hungry semiconductor fabrication centers, amounting to some $28 billion in aggregate spending. Subscribers can learn more by viewing the related project reports.
AEP has more than $1.7 billion worth of power transmission projects planned in Ohio, but according to Industrial Info's records, little actual generation. While a 950-megawatt (MW) natural gas-fired power center is going up in northeast Ohio near the Pennsylvania border, the majority of the state's power developments under construction come from solar power. Industrial Info is tracking four solar power projects that are presently under construction in Greater Columbus, the largest of which comes from Invenergy LLC (Chicago, Illinois), with whom Meta Platforms has a power purchase agreement in place for at least one Ohio facility. Construction on Invenergy's Pleasant Prairie solar farm kicked off last year and is expected to be completed this fall, when the plant will begin ramping up toward 250 MW of generation, new power that will be sorely needed in the Columbus area as the region's new data centers are switched on. Subscribers to Industrial Info's Power Project Database can click here for more details on the project.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
