3M and Microsoft Forge Strategic Partnership to Advance AI Data Center Infrastructure and Enterprise Transformation

Microsoft and 3M announced a strategic partnership on Wednesday, aiming to tackle two critical fronts in the AI revolution: the physical infrastructure of data centers and the digital transformation of the enterprise. The collaboration positions Microsoft as the first hyperscale cloud provider to deploy 3M’s proprietary Expanded Beam Optical (EBO) technology in its Azure data centers, while 3M will integrate Microsoft’s AI and digital platforms across its own business functions.

The core of the infrastructure deal revolves around 3M’s EBO technology, which replaces the direct-contact interface of traditional fiber connectors with an expanded beam optical interface. This design is intended to make fiber connections faster to install, more tolerant of dust and contamination, and easier to maintain—addressing a persistent operational challenge in dense, high-volume data center environments. Microsoft’s early testing of the technology has shown potential to reduce network deployment timelines in certain settings, while maintaining strong signal performance under real-world conditions where exposure to dust and routine handling are common. As demand for AI workloads surges, 3M is scaling production of its EBO technology to meet the accelerating needs of hyperscalers and data center operators. The company has also helped establish the EBO Multi-Source Agreement (MSA) to drive standardization and broader industry adoption.

“At Microsoft, we’re redefining the foundation of cloud and AI infrastructure — combining our own innovations with advances from partners like 3M to build datacenters that are faster to deploy, more resilient and ready for the scale of AI,” said Cliff Henson, corporate vice president of Cloud Supply Chain at Microsoft. He added that 3M’s EBO solution will help unlock new levels of performance, reliability, and efficiency for customers running cloud and AI workloads.

On the enterprise side, 3M will deploy Microsoft’s AI and digital capabilities across key areas including customer service, finance, sales, and marketing. A specific early initiative involves the newly launched Microsoft Frontier Company, which is embedding engineers with 3M’s Global Business Services team to automate customer order management. The collaboration is developing an AI agent-driven workflow to handle credit checks, delinquency assessments, and system updates, supported by human-in-the-loop controls and a custom monitoring dashboard for real-time oversight. The companies expect this solution to significantly reduce manual effort, improve process speed and consistency, and accelerate cash flow, freeing 3M employees for higher-value tasks.

“At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences and help our teams work more effectively,” said Jon Van Wyck, executive vice president and chief strategy officer at 3M. He noted that the collaboration with Microsoft supports that vision through targeted optimization opportunities while advancing the infrastructure needed to power the future of AI. The two companies plan to build on this partnership through continued technical collaboration, bench-to-bench engagement between engineering and commercial teams, and joint innovation across Microsoft’s data center and device ecosystem.