Microsoft is halting early-stage projects on rural land it owns in central Ohio’s Licking County, a move that slows down its $1 billion data center expansion plan. The tech giant, which has long invested heavily in building data centers worldwide to power its cloud computing services, said it needs to “agility and refinement” as it learns from customers.
The pause is seen as a sign that the demand for artificial intelligence technology may not be as high as expected, according to analysts. Microsoft’s shift in focus comes after a change in its relationship with OpenAI, the maker of ChatGPT. Analysts say this shift could impact the company’s plans to expand its AI infrastructure.
Despite slowing down some projects, Microsoft still plans to invest over $80 billion globally in AI expansion this fiscal year and has doubled its data center capacity in three years. The company’s president, Noelle Walsh, said it will continue to grow strongly while staying aligned with business priorities and customer demand.
The move is a disappointment to local officials, who had been hoping for more investments in the area. Microsoft rivals Google and Meta Platforms have also invested in Ohio, and Intel has announced plans for a highly anticipated semiconductor factory.
Source: https://apnews.com/article/microsoft-ai-data-center-pause-ohio-4d987fe8446fc9e6cda31d919f938911