Microsoft Pledges To Rewire Data Centres With Superconductors To Resolve AI Energy Crisis

Mumbai, February 11: Microsoft has announced a fundamental redesign of its global data centre infrastructure using high-temperature superconductors (HTS) to address the escalating power demands of artificial intelligence. The initiative, revealed on Wednesday, aims to replace traditional copper and aluminium wiring with zero-resistance materials that can transmit electricity without energy loss or heat generation.

The strategy arrives as the technology sector faces mounting pressure over the environmental impact of generative AI. By utilizing HTS technology, Microsoft expects to drastically reduce the physical footprint of its facilities and minimize the strain on local electrical grids, potentially easing the widespread public backlash against the rapid expansion of AI-scale data centres. Satya Nadella Announces USD 17.5 Billion Microsoft Investment in India Following Talks With PM Narendra Modi on Country’s AI Opportunities and Ambitions.

Microsoft's Strategic Pivot to Superconducting Infrastructure

Microsoft’s exploration into HTS is being spearheaded by its global infrastructure teams in collaboration with Massachusetts-based startup VEIR. Recent demonstrations funded by the tech giant showed that superconducting cables could deliver equivalent power while reducing cable weight and dimensions by nearly 10x compared to conventional alternatives.

"As the demand for AI and data-intensive computing rises, the need for efficient and reliable power delivery is critical," stated Alistair Speirs, Microsoft General Manager of Azure Infrastructure. The transition to HTS allows for much higher electrical density, enabling the company to pack more computing power into smaller spaces without the thermal limitations associated with traditional conductors.

Microsoft Scaling Back Expansion for Efficiency

The technological shift follows a significant adjustment in Microsoft's broader growth strategy. The company recently confirmed plans to scale back data centre expansion in the United States and Europe, delaying or cancelling projects representing approximately 2 GW of capacity. This pullback is part of a "Community-First AI Infrastructure" framework designed to prevent data centres from driving up residential electricity bills.

Microsoft President Brad Smith emphasized at a recent event near the White House that the company would not accept tax reductions or electricity rate discounts in towns where it operates. Instead, the firm has committed to paying full property taxes and ensuring its massive energy requirements do not influence local utility rates, a move that align with a partnership announced with the US administration.

Microsoft Challenges in the Superconducting Supply Chain

While the benefits of HTS are significant, widespread adoption faces technical and economic hurdles. To maintain zero resistance, these cables must be continuously cooled to nearly -200°C, typically using liquid nitrogen systems. Furthermore, the specialized "tape" required for these cables is made from rare-earth barium copper oxide, a material currently dominated by Chinese manufacturers. Microsoft To Offer In-Country Copilot Data Processing in India by End of 2025 To Enhance Customer Control Over AI Data

However, Microsoft executives believe the surge in nuclear fusion research—which also utilizes HTS materials—is helping to lower costs and diversify the supply chain. Microsoft has already secured a power purchase agreement with Washington-based Helion Energy, which began construction on a first-of-its-kind fusion plant in July 2025 to provide clean energy for the company's data centres by 2028.

(The above story first appeared on LatestLY on Feb 11, 2026 09:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).