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Microsoft spending $1 billion to build multiple data center campuses in Licking County

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Microsoft spending $1 billion to build multiple data center campuses in Licking County.

Microsoft plans to develop three data center campuses in Licking County and invest $1 billion in the initial stage as part of a project that received approval for state tax incentives Monday.

The campuses will be developed in New Albany, Heath and Hebron, with one building on each campus at first with the potential for several buildings on each site.

The campuses will help Microsoft expand its cloud infrastructure to support rapid global growth in digital services, the company told economic development leaders. The project has the potential to create hundreds of jobs if the campuses reach full capacity.

Microsoft’s initial investment will consist of $700 million in building costs and $300 million in machinery expenses. The project will create 20 jobs to start.

The incentives approved by Ohio Tax Credit Authority on Monday are worth an estimated $72.5 million. The incentives will start in 2027.

Bowen Wallace, Microsoft Vice President, said in a statement:

The Columbus region’s skilled workforce, strong infrastructure, and strategic location make it ideal for this project.

“Many Ohio businesses and government entities use the Microsoft cloud as the platform for their business operations. These data center developments will help us continue to effectively serve our Ohio customers.”

Microsoft says the project is expected to create about 400 construction jobs annually.

The timeline for construction and operations will depend on multiple factors including the design, planning and permitting process, according to One Columbus, the region’s economic development arm.

The locations in Hebron and Heath are pending local approvals.

Microsoft has been gobbling up land in the three communities for more than a year, and community leaders have been signaling that the tech giant is planning on developing data centers.

Microsoft has no other data centers in Ohio, but has 300 around the world.

The mayors of all three communities say they welcome Microsoft’s investment.

Microsoft is the latest tech giant to build data centers in central Ohio. AmazonFacebook parent Meta, Google and several other companies have developed data centers with more on the way.

This month, New Albany signed off on plans by Microsoft to build a $420 million data center on Beech Road. That project is scheduled to start in July.

One Columbus says total data center investment in the region has topped $20 billion.

READ the latest news shaping the data centre market at Data Centre Central

Microsoft spending $1 billion to build multiple data center campuses in Licking County. source

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