Microsoft Explores Superconducting Cables to Cut Data Center Power Costs (MSFT)

Microsoft (MSFT) is evaluating superconducting power lines for its data centers, aiming to reduce energy use and shorten construction timelines as it expands its U.S. server farm build-out. Aging power infrastructure and constrained supplies have slowed expansion, while recent tests show superconducting cables can deliver the same capacity as traditional lines in a smaller footprint. "The technology allows us to scale power density without expanding our physical footprint and can reduce the size of transmission infrastructure," said Husam Alissa, who leads the Systems Technology Team in Microsoft’s CO+I CTO Office. High-temperature superconductors, using ceramic-like materials, are more efficient than copper and aluminum conductors. Deployment could increase electrical density without expanding substations, but the company has not disclosed investment levels or a deployment timeline. The technology has faced high costs and manufacturing constraints, though Microsoft is investing in superconducting companies such as Boston-based VEIR, which raised $75 million in Series B funding last year and recently demonstrated a three-megawatt cable for a server rack. Data center power use is projected to rise to about 12% of U.S. electricity by 2028, up from roughly 4% in 2022, reflecting a tripling over that period. Single data center campuses will require more than one gigawatt of power, enough to supply about 750,000 homes.