Microsoft Bets on Distant Superconductor Tech to Power Future AI Data Centers
February 10, 2026
As the global demand for artificial intelligence compute drives an unprecedented expansion of data center infrastructure, tech giants are under intense pressure to solve the twin challenges of skyrocketing power consumption and physical space constraints. In this high-stakes environment, Microsoft is investigating a potentially transformative, yet distant, technology: high-temperature superconducting (HTS) power delivery systems. In a recent blog post, Alistair Speirs, General Manager for Azure Infrastructure, outlined the company's vision. He explained that HTS technology, which utilizes superconducting tape cooled by liquid nitrogen to achieve nearly lossless electrical transmission, could replace traditional copper and aluminum wiring. The key advantages are twofold: vastly improved power delivery efficiency and a significantly reduced physical footprint for moving immense amounts of electricity. Speirs noted that conventional conductors often force operators into difficult choices between expanding substations, adding more feeders, or limiting deployment density. "Superconductors could 'break this tradeoff,'" he stated, "by allowing for increased electrical density without a larger physical footprint."
Microsoft's interest materialized in early 2025 with an investment in HTS firm Veir, participating in a $75 million Series B funding round. The partnership aims to develop data center-specific HTS systems. However, the technology remains in its infancy. Veir's first successful demonstration in a simulated data center environment occurred only in November, delivering a modest 3 megawatts through a single cable. While Veir targets full commercialization in 2026, Microsoft is clear that widespread deployment is not imminent. A company spokesperson emphasized that "HTS remains in the development and evaluation stage for adoption at Microsoft's scale," with current work focused on testing and validation with partners.
The road to commercialization is fraught with hurdles. Industry analyses, such as those from the European Network of Transmission System Operators for Electricity, indicate that HTS cables remain prohibitively expensive for widespread grid use, especially when factoring in cooling costs, and face challenges in achieving high-voltage transmission. This places Microsoft's HTS exploration in a familiar pattern for the industry: promising long-term solutions touted alongside ongoing reliance on conventional infrastructure. Despite the uncertainties, the potential industry implications are significant. If the technical and economic barriers can be overcome, HTS systems could enable more compact, power-dense, and sustainable data center designs. Speirs suggested that "next-gen superconducting transmission lines... can accelerate the expansion and interconnection of data center sites, speeding up compute deployment to meet the growing global demand." For now, the technology represents a strategic bet on a future where the physics of power delivery are fundamentally rewritten to support the AI era.
Source: theregister
