Microsoft delays construction on $1B data center project outside Charlotte
Microsoft is delaying construction of its planned $1 billion data center in Catawba County. It’s a move the tech giant is making with all of its planned growth nationally and internationally.
It’s unclear how long the delay will last, according to Scott Millar, president of that Catawba County Economic Development Corp. But Microsoft told county officials that it’s still committed to expanding in the region.
And that expansion has already started.
“(Microsoft) has spent hundreds of millions on the grading for all of those future sites already,” Millar said. “They’ve said we’re completely 100% committed to Catawba County. What (Microsoft) is doing right now is, I’m going to say optimization of these global facilities. They’re just trying to figure out when, where and how best to get these buildings constructed.”
Microsoft did not immediately respond to a request for comment from The Charlotte Observer.
Microsoft’s plans for Catawba County
In 2022, Microsoft announced that it would be investing $1 billion in building four data centers in Conover, Hickory and Maiden. The project would create at least 50 jobs and be completed in the next 10 years.
Microsoft began grading the sites last year, Millar said. At the same time, the tech company has also begun working with Duke Energy on padding needed for the new electrical substations that will power the data centers.
Prior to the delay, Microsoft was getting ready to start the hard construction on the sites, which are about 200 acres each, Millar said. The delay was first reported by the Charlotte Business Journal.
But Catawba County isn’t worried about the delay — mainly because none of the agreements between the county and Microsoft include a start date.
“We’ve got agreements that say you’ve got to finish by this date, but that’s still several years out in the future,” Millar said. “We’re not exactly looking at the minute and hour that they get construction started. We’re keeping an eye on progress.
From our perspective, it’s (Microsoft) trying to make the best decisions, and we support that.”
Microsoft investment delays
In the last seven months, Microsoft has either delayed or put a stop to several data center projects across the U.S. and internationally, including in Illinois, Wisconsin, Indonesia and the U.K., multiple news outlets have reported.
Microsoft hasn’t explicitly said why the company is pulling back but news outlets reported there could be two major factors: Microsoft is assessing its data center oversupply to its demand and general construction issues, such as building material or power supply.
However, Microsoft told several outlets in March that it still expects to spend about $80 billion on data center construction in the current fiscal year, which ends in June.
Tech investments near Charlotte
Microsoft isn’t the only tech company investing in the Hickory region.
In 2010, Apple opened one of its largest data centers in Maiden, which is about 40 miles northwest of Charlotte. Over the last decade, Apple has invested close to $5 billion in the region, Millar said.
And Apple is planning to continue growing in the state. In February, the tech company said North Carolina would be part of its $500 billion U.S. expansion plans. That plan includes expansion in Catawba County and the Raleigh area, even though it announced last year it was delaying its project in the Triangle by four years.
In 2013, Bed Bath & Beyond opened a data center in Claremont, which was worth $36.8 million. That site was sold to Data Journey, a co-location center, last year, Business North Carolina reported.
The tech investments are all part of Catawba’s economic development plans, Millar said.
Back in 2006, the county began pursuing data center investments to replace the downturn of its textile, furniture and coaxial cable industries.
While the latter industries still exist in the county, the growth and demand of data centers have provided strong net taxable benefits and net revenue, Millar said.
And the tech investments aren’t just occurring in Catawba County.
In Caldwell County, Google said it was considering expanding its existing data center. It would invest $600 million for a new site in Lenoir, near Hickory.
Microsoft essentially has until 2032 to complete its project in Catawba County. In the meantime, the county will continue to look for other data center investment opportunities.
“We’ve still got a lot of furniture, textiles, coaxial and fiber optics manufacturers, but this just added another dimension to that,” Millar said. “It’s like balancing your portfolio if you’re an investor. You want your retirement plan to be balanced with a whole lot of different things so it can withstand challenges.
“Good balanced economic diversification is really what economic development is about.”
This story was originally published April 15, 2025 at 1:39 PM.
