$1 Billion Microsoft Licking County Data Center Expansion Moves From Pause to Construction

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Renderings of the Microsoft Data Center

The Microsoft Licking County Data Center Expansion is a $1 billion data center program located in Licking County, Ohio, now moving ahead again after the pause announced in April 2025. Microsoft held groundbreaking ceremonies at its Heath and Hebron sites in late February 2026, with Hebron construction expected to finish in November.

Microsoft Licking County Data Center Expansion Mirrors a Wider Restart Pattern

Microsoft’s Heath construction updates describe summer site preparation continuing in July 2026, while its New Albany update says Ames Construction’s site work there is nearing completion. A similar restart is unfolding in Texas, where the Taylor Technology Campus data center annexation won a unanimous council vote after its developers withdrew an earlier application.

Project Overview

  • Project Name: Microsoft Licking County Data Center Expansion
  • Location: Licking County, Ohio, across New Albany, Heath and Hebron
  • Project Value: $1 billion initial investment announced in October 2024, including $420 million earmarked for the New Albany campus
  • Client or Owner: Microsoft
  • Main Contractor: Ames Construction
  • Key Components: 245,000 square foot data center on nearly 200 acres at New Albany; 227 acre site at Heath; 223 acre site at Hebron, where six data center buildings were planned in 2024
  • Construction Start: New Albany site preparation began in late 2024; Heath and Hebron groundbreaking ceremonies held in late February 2026
  • Expected Completion: Hebron data center expected in November, according to Microsoft’s website as reported in February 2026; no updated dates published for Heath or New Albany buildings
  • Strategic Impact: At least 30 full time jobs at New Albany, per earlier CRO coverage; 15 year property tax abatement approved by New Albany in October 2024

Project Team

  • Owner: Microsoft
  • General Contractor: Ames Construction
  • Regional Economic Development Partner: One Columbus 
  • Host City: City of New Albany 
  • Host City: City of Heath
  • Host Community: Hebron
$1 Billion Microsoft Licking County Data Center Expansion Moves From Pause to Construction
$1 Billion Microsoft Licking County Data Center Expansion Moves From Pause to Construction

Reported 9th April 2025: Microsoft has hit pause on its much-anticipated $1 billion data center project in Licking County, Ohio. The build, which was expected to energize three locations—New Albany, Heath, and Hebron—has run into some fresh challenges that are slowing things down. Increased costs, partially fueled by the impact of recent tariffs on construction materials and imported technology, have forced the tech giant to rethink its strategy. This new hurdle is linked to changes in trade policies announced by the previous administration. Additionally, it has reshaped plans that were once brimming with optimism and anticipated econmic benefits for the region.

Also Read Microsoft signs PPA’s for new US$4.3 billion France data center investment

With immediate developments on hold in Heath and Hebron, the local communities are left in a state of cautious anticipation. Microsoft confirmed that aside from its New Albany site, further construction on the other locations is postponed until market conditions prove more favorable. Nevertheless, the company assured residents that the land will continue to be available for farming. This will preserve one of the traditional local livelihoods.

Meanwhile, necessary infrastructure improvements including road and utility upgrades will still move forward. When the full project eventually resumes, the groundwork is already being laid for a seamless transition into the high-tech era, complementing broader investments such as Microsoft’s €3.2 billion expansion in Germany with the Elsdorf data center announcement.

Project Overview

Location: Licking County, Ohio

Project cost: US$1 billion

Project scope: 200 acres, 245,000-square-feet

Contractor: Ames Construction

Start date: October 2024

Also Read Microsoft to invest $3.3B in AI data center campus in Mount Pleasant, Wisconsin

The Future of the Microsoft Data Center in Ohio

Local officials and community leaders remain hopeful that the project will gain new momentum in the near future. It is their opinion that the delay as a temporary setback rather than a full stop. The 245,000-square-foot data center in New Albany, initially slated for completion by late 2027, will now progress at a more gradual pace. The center promised to create at least 30 ful-time jobs and boosting local tax revenues. This tech investment once held the promise of transforming the regional economic landscape. Though Microsoft’s nationwide pullback reflects broader global supply chain challenges and ongoing policy shifts, the local spirit continues to be fueled by the hope of future revitalization and progress.

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