Microsoft has announced it will “push back plans” for its $1 billion data center project in Ohio, citing rising costs and tariffs. The tech giant had committed to investing the funds just months ago, which was expected to generate thousands of jobs and boost the local economy.
The decision is part of a trend in the technology sector due to high AI budgets and Trump’s tariffs on top technology equipment suppliers. The tariffs, which include a 34% duty on China, 32% on Taiwan, and 25% on South Korea, are expected to make equipment for data centers more expensive.
As a result, analysts predict that tech giants will reallocate their short-term spending away from expansion and toward procurement hedging or sourcing shifts. Microsoft’s partner at research firm Everest Group, Abhishek Singh, said, “Capital expenditure by tech giants will get reshuffled.”
The project, which was set to create 400 construction jobs and hundreds of full-time jobs, was expected to start in July. However, Microsoft will honor its development agreements for roadway and utility upgrades and claim the land could be used for farming.
Microsoft’s decision comes just months after it committed to investing $1 billion in the state, an action that was poised to generate thousands of jobs and boost the local economy. The company will not provide further details on the project’s revised timeline or impact on employment.
Source: https://economictimes.indiatimes.com/news/international/us/not-just-globally-u-s-also-hit-hard-by-trumps-tariffs-microsoft-backs-out-of-1-billion-ohio-plant-citing-rising-costs/articleshow/120127529.cms?from=mdr