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)
JOLIET, Ill. (AP) — An Illinois landlord who killed a 6-year-old Muslim boy and severely injured the boy's mother in a brutal hate-crime attack days after the war in Gaza began was sentenced Friday to 53 years in prison.
Joseph Czuba, 73, was found guilty in February of murder, attempted murder and hate-crime charges in the death of Wadee Alfayoumi and the wounding of his mother, Hanan Shaheen.
Judge Amy Bertani-Tomczak sentenced Czuba to 30 years in the boy's death and another 20 years consecutively for the attack on Shaheen. The judge also sentenced him to three years imprisonment for hate crimes. The length of the sentence makes it all but certain he will die behind bars.
Czuba did not speak during the sentencing. His attorney, George Lenard, didn't immediately respond to an email from The Associated Press seeking comment.
The boy's great-uncle, Mohmoud Yousef, was the only family member who spoke during the hearing. He said that no matter the sentence length it wouldn't be enough. The boy's parents had plans for him and Czuba robbed them of that, he said.
Yousef asked Czuba to explain why he attacked the boy and his mother, asking him what news he heard that provoked him, but Czuba did not respond, the Chicago Tribune reported.
Czuba targeted them in October 2023 because of their Islamic faith and as a response to the war between Israel and Hamas.
Evidence at trial included harrowing testimony from Shaheen and her frantic 911 call, along with bloody crime scene photos and police video. Jurors deliberated less than 90 minutes before handing in a verdict.
The family had been renting rooms in Czuba’s home in Plainfield, about 40 miles (64 kilometers) from Chicago when the attack happened.
Central to prosecutors' case was harrowing testimony from the boy’s mother, who said Czuba attacked her before moving on to her son, insisting they had to leave because they were Muslim. Prosecutors also played the 911 call and showed police footage. Czuba's wife, Mary, whom he has since divorced, also testified for the prosecution, saying he had become agitated about the Israel-Hamas war, which had erupted days earlier.
Police said Czuba pulled a knife from a holder on a belt and stabbed the boy 26 times, leaving the knife in the child's body. Some of the bloody crime scene photos were so explicit that the judge agreed to turn television screens showing them away from the audience, which included Wadee's relatives.
“He could not escape,” Michael Fitzgerald, a Will County assistant state’s attorney, told jurors at trial. “If it wasn’t enough that this defendant killed that little boy, he left the knife in the little boy’s body.”
The jury deliberated for 90 minutes before returning a verdict.
The attack renewed fears of anti-Muslim discrimination and hit particularly hard in Plainfield and surrounding suburbs, which have a large and established Palestinian community. Wadee's funeral drew large crowds and Plainfield officials have dedicated a park playground in his honor.
Shaheen had more than a dozen stab wounds and it took her weeks to recover.
She said there were no prior issues in the two years she rented from the Czubas, even sharing a kitchen and a living room. Then after the start of the war, Czuba told her that they had to move out because Muslims were not welcome. He later confronted Shaheen and attacked her, holding her down, stabbing her and trying to break her teeth.
“He told me ‘You, as a Muslim, must die,’” said Shaheen, who testified at trial in English and Arabic though a translator.
Police testified that officers found Czuba outside the house, sitting on the ground with blood on his body and hands.
Separately, lawsuits have been filed over the boy’s death, including by his father, Odai Alfayoumi, who is divorced from Shaheen and was not living with them. The U.S. Department of Justice also launched a federal hate crimes investigation.
Yousef told reporters after the hearing that Czuba was a grandfather figure to Wadee and the family doesn’t understand what “fake news” Czuba may have heard about the war in Gaza that caused him to attack the boy and his mother. People need to understand Muslims before judging them, he said.
“Some people are bringing this war to this country,” Yousef said. “We cannot do that. We can’t bring the war here. We cannot bring hatred to this country . . . we need that to stop.”
Odai Al Fayoumi, father of Wadee Al Fayoumi, who was murdered by Joseph Czuba in 2023, speaks to the media after the sentencing of Czuba outside the Will County Courthouse in Joliet, Ill., Friday, May 2, 2025. (Pat Nabong /Chicago Sun-Times via AP)
Will County Prosecutor Christopher Koch exits the Will County Courthouse after the sentencing of Joseph Czuba in Joliet, Ill., Friday, May 2, 2025. (Pat Nabong /Chicago Sun-Times via AP)
Odai Al Fayoumi, left, father of Wadee Al Fayoumi, who was murdered by Joseph Czuba in 2023, walks out of the Will County Courthouse after the sentencing of Czuba in Joliet, Ill., Friday, May 2, 2025. (Pat Nabong /Chicago Sun-Times via AP)
Odai Al Fayoumi, left, father of Wadee Al Fayoumi, who was murdered by Joseph Czuba in 2023, walks out of the Will County Courthouse after the sentencing of Czuba in Joliet, Ill., Friday, May 2, 2025. (Pat Nabong /Chicago Sun-Times via AP)
Mahmoud Yousef, grandfather of Wadee Al Fayoumi, who was murdered by Joseph Czuba in 2023, speaks to the media after the sentencing of outside the Will County Courthouse in Joliet, Ill., Friday, May 2, 2025. (Pat Nabong /Chicago Sun-Times via AP)
Mahmoud Yousef, grandfather of Wadee Al Fayoumi, who was murdered by Joseph Czuba in 2023, speaks to the media after the sentencing of Czuba outside the Will County Courthouse in Joliet, Ill., Friday, May 2, 2025. (Pat Nabong /Chicago Sun-Times via AP)
FILE - Wadee Alfayoumi's father, Oday Al Fayoume, seated right, and his uncle Mahmoud Yousef attend a vigil for Wadee at Prairie Activity and Recreation center in Plainfield, Ill., Oct. 17, 2023. (AP Photo/Nam Y. Huh, File)
FILE - Joseph Czuba, 71, stands before Circuit Judge Dave Carlson for his arraignment at the Will County, Ill., courthouse, Oct. 30, 2023, in Joliet, Ill. (AP Photo/Charles Rex Arbogast, File)
