Microsoft says it's 'slowing or pausing' some AI data center projects, including $1B plan for Ohio

Microsoft said it is “slowing or pausing” some of its data center construction, including a $1 billion project in Ohio, the latest sign that the demand for artificial intelligence technology that drove a massive infrastructure expansion might not need quite as many powerful computers as expected.

The tech giant confirmed this week that it is halting early-stage projects on rural land it owns in central Ohio's Licking County, outside of Columbus, and will reserve two of the three sites for farmland.

“In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history,” said Noelle Walsh, the president of Microsoft's cloud computing operations, in a post on LinkedIn.

Walsh said “any significant new endeavor at this size and scale requires agility and refinement as we learn and grow with our customers. What this means is that we are slowing or pausing some early-stage projects.”

Microsoft didn't say Wednesday what other projects it has slowed outside of Ohio, but in late December it revealed it was pausing the later phases of a large data center project in Wisconsin.

Analysts with TD Cowen reported earlier this year that Microsoft was also scaling back some of its international data center expansion and canceling some leases in the U.S. for use of data centers operated by other companies.

Other analysts for months have tied some of the changes to a shift in Microsoft's close relationship with its business partner OpenAI, maker of ChatGPT.

“OpenAI was moving in one direction” by prioritizing the development of more advanced AI systems, which require vast computing resources to train on troves of data, while “Microsoft may not have been moving that same direction,” said Craig Ellis, director of research at B. Riley Securities.

The two companies announced on Jan. 21 that they were altering the agreement that had made Microsoft the exclusive provider of OpenAI's computing power, enabling the smaller company to build its own capacity, “primarily for research and training of models.” It was the same day that newly inaugurated President Donald Trump touted OpenAI's partnership with Oracle and SoftBank to pledge $500 billion in new AI infrastructure in the U.S., starting with a data center in Texas.

Microsoft has long built data centers around the world to run its cloud computing services. The generative AI boom accelerated the demand for such facilities, both to train new AI systems and to keep them running as millions of people start using chatbots and other AI tools at work and home.

The computing it takes to run AI tools is expensive and requires a large amount of electricity — so much so that Trump this week cited AI needs as part of the justification for using his emergency authorities to boost the declining U.S. coal industry, a reliable but polluting energy source. Tech companies have also sought to tap into nuclear power, including a proposed Microsoft-backed revival of the shuttered Three Mile Island plant in Pennsylvania, which would feed an electricity grid supplying data centers in Ohio as well as Virginia, the nation's biggest data center hub.

Microsoft said it still plans to spend more than $80 billion globally to expand its AI infrastructure this fiscal year, which ends in June, and has already doubled its data center capacity over the past three years.

“While we may strategically pace our plans, we will continue to grow strongly and allocate investments that stay aligned with business priorities and customer demand,” Walsh said.

The Ohio pause nevertheless came as a disappointment to local officials.

Licking County has also attracted data center investments from Microsoft rivals Google and Meta Platforms and a highly anticipated semiconductor factory from Intel, though the struggling chipmaker in February pushed back the expected completion date for the project's first stage to 2030.

Microsoft AI CEO Mustafa Suleyman speaks during a presentation of the company's AI assistant, Copilot, ahead of a 50th Anniversary presentation at Microsoft headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP Photo/Jason Redmond)

A Microsoft sign and logo are pictured at the company's headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP Photo/Jason Redmond)

BERLIN (AP) — European leaders are expected to cement support for Ukraine Monday as it faces Washington’s pressure to swiftly accept a U.S.-brokered peace deal.

After Sunday’s talks in Berlin between U.S. envoys and Ukrainian President Volodymyr Zelenskyy, Ukrainian and European officials are set to continue a series of meetings in an effort to secure the continent’s peace and security in the face of an increasingly assertive Russia.

Zelenskyy sat down Sunday with U.S. President Donald Trump’s special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner in the German federal chancellery in the hopes of bringing the nearly four-year war to a close.

Washington has tried for months to navigate the demands of each side as Trump presses for a swift end to Russia’s war and grows increasingly exasperated by delays. The search for possible compromises has run into major obstacles, including control of Ukraine’s eastern Donetsk region, which is mostly occupied by Russian forces.

The U.S. government late Sunday said in a social media post on Witkoff’s account after the five-hour meeting that “a lot of progress was made.”

Earlier in the day, Zelenskyy voiced readiness to drop his country’s bid to join NATO if the U.S. and other Western nations give Kyiv security guarantees similar to those offered to NATO members. But Ukraine continued to reject the U.S. push for ceding territory to Russia.

Putin wants Ukraine to withdraw its forces from the part of the Donetsk region still under its control among the key conditions for peace.

The Russian president also has cast Ukraine’s bid to join NATO as a major threat to Moscow’s security and a reason for launching the full-scale invasion in February 2022. The Kremlin has demanded that Ukraine renounce the bid for alliance membership as part of any prospective peace settlement.

Zelenskyy emphasized that any Western security assurances would need to be legally binding and supported by the U.S. Congress.

German Chancellor Friedrich Merz, who has spearheaded European efforts to support Ukraine alongside French President Emmanuel Macron and U.K. Prime Minister Keir Starmer, said Saturday that “the decades of the ‘Pax Americana’ are largely over for us in Europe and for us in Germany as well.”

“Pax Americana” refers to the U.S.’s postwar dominance as a superpower that has brought relative peace to the globe.

Merz warned that Putin’s aim is “a fundamental change to the borders in Europe, the restoration of the old Soviet Union within its borders.”

“If Ukraine falls, he won’t stop,” Merz warned during a party conference in Munich.

Macron, meanwhile, vowed Sunday on social platform X that “France is, and will remain, at Ukraine’s side to build a robust and lasting peace — one that can guarantee Ukraine’s security and sovereignty, and that of Europe, over the long term.”

Putin has denied plans to attack any European allies.

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Ciobanu reported from Warsaw, Poland.

Steve Witkoff, special envoy of the United States, leaves through a hotel garage for talks between representatives of the U.S. and Ukraine in Berlin, Germany, Sunday, Dec. 14, 2025. (AP Photo/Markus Schreiber)

German Chancellor Friedrich Merz,stands in his office in the chancellory in Berlin, Germany, Sunday, Dec. 14, 2025. (AP Photo/Maryam Majd)

Steve Witkoff, special envoy of the United States, arrives for talks between representatives of the U.S. and Ukraine, at the Hotel Adlon, in Berlin, Sunday, Dec. 14, 2025. (Kay Nietfeld/dpa via AP)

Jared Kushner, entrepreneur and former chief adviser to President Donald Trump, arrives for talks between representatives of the U.S. and Ukraine at the Hotel Adlon, in Berlin, Sunday, Dec. 14, 2025. (Kay Nietfeld/dpa via AP)

German Chancellor Friedrich Merz, right, watches Ukraine's President Volodymyr Zelenskyy arriving at the chancellory in Berlin, Germany, Sunday, Dec. 14, 2025. (AP Photo/Maryam Majd)