Microsoft has backed out of plans to build data centers in Licking County, Ohio.

The company told the Columbus Dispatch that it was no longer moving forward with its previous plans to invest $1 billion in three data center campuses in New Albany, Heath, and Hebron.

This is the latest in a series of data center project cancellations from Microsoft, with reports recently emerging that the company had pulled back on as much as 2GW of data center projects across the US and Europe. Shortly after, it was further reported that cancellations also occurred in APAC and the UK.

Microsoft announced plans to invest $1 billion in data center campuses in Central Ohio back in October 2024.

At the time, $420 million was earmarked for the New Albany data center campus, with the City Council approving a 15-year tax abatement for Microsoft that same month.

That data center was planned to span 245,000 sq ft (22,800 sqm) on a 200-acre site, located between Beech Road and the Licking-Franklin county line, north of Fitzwilliam Lane N.W, with construction to begin in July 2025.

The location of the Heath and Hebron data centers were not specified, but Microsoft previously purchased 227 acres along Thornwood Drive in Heath, and 223 acres on High Street in Hebron. Construction of the Heath development was slated to begin in the summer of 2025, and the Hebron site in 2026.

Speaking to the Columbus Dispatch about the decision to pull back on the Ohio projects, a Microsoft spokesperson said: "We will continue to evaluate these sites in line with our investment strategy. We sincerely appreciate the leadership and partnership of Ohio government officials and the support of Licking County residents."

The company later added that it will continue to own the land and intends to proceed with the development at some unspecified time in the future. In the meantime, land at two of the sites will be kept in a state that allows it to be used for farming, and the company is moving forward with its agreements for roadway and utility upgrades.

Speculation over Microsoft's ever-growing list of canceled data center projects has been rife. Brokerage TD Cowen first brought attention to the matter, with analysts from the company speculating that the "lease cancellations and deferrals of capacity points to data center oversupply relative to its current demand forecast.”

Thus far, Microsoft's stance has been unmoving, with the company providing the following blanket statement to publications: "Thanks to the significant investments we have made up to this point, we are well positioned to meet our current and increasing customer demand. Last year alone, we added more capacity than any prior year in history. While we may strategically pace or adjust our infrastructure in some areas, we will continue to grow strongly in all regions. This allows us to invest and allocate resources to growth areas for our future. Our plans to spend over $80bn on infrastructure this FY remains on track as we continue to grow at a record pace to meet customer demand."

DCD has reached out to see if this remains the company's position.