Microsoft has announced plans to redesign its data centres using high-temperature superconductors (HTS). These materials, through which electricity flows without resistance, appear meant to calm rising fears about the power needs and facilities of AI. They could minimise the physical space required by data centres and the electricity transmission cables supplying them power, which may reduce the backlash against AI. This comes as tech companies face criticism for the substantial energy requirements of generative AI, delays in connecting to power grids due to inadequate infrastructure, and the local impacts of new data centre construction. Recently, Microsoft also announced its plans to scale back data centre expansion in the US and Europe. The company cancelled or delayed projects representing roughly 2 GW of capacity due to oversupply concerns and shifting AI demand. The pullback came after US President Donald Trump announced a partnership with tech companies to ensure data centres do not drive up electricity bills, naming Microsoft as the first company on board.Microsoft President Brad Smith described Microsoft’s plans at an event near the White House in October 2025. In his speech, Brad stated that the idea aims to minimise water consumption while guaranteeing that Microsoft’s electric power does not influence people’s bills. He added that in towns where Microsoft has data centres, the company would pay its property taxes and accept neither tax reductions nor electricity rate discounts.In a recent blog post, Alistair Speirs, Microsoft GM of Global Infrastructure Marketing, wrote, “Microsoft is exploring how this technology could make electrical grids stronger and reduce the impact data centres have on nearby communities.”
How can this technology improve the efficiency of Microsoft and other data centres
Current data centres and energy infrastructure rely on copper wires to conduct electricity. However, HTS cables conduct electrical current with zero resistance, reducing energy loss and enabling lighter, more compact cables. HTS is already used in MRI machines and, more recently, in short stretches of power lines in dense metropolitan areas, including Paris and Chicago.Their use has been limited in part because HTS cables are more complex and expensive to integrate into energy systems than copper cables. To achieve zero resistance, HTS cables must be cooled to low temperatures, likely using liquid nitrogen. The HTS “tape” used to form superconducting cables is typically made of rare-earth barium copper oxide. While a superconducting cable requires only a small amount of rare-earth material, the supply chain for the rare-earth element remains largely concentrated in China. Increasing manufacturing capacity for this tape to a level that makes it affordable poses an additional challenge, experts say.That is starting to change due to the power demands of generative AI. In recent years, tech companies have fuelled research into nuclear fusion power, and much of the HTS tape that is currently manufactured is used in fusion research. Growth in that area has helped lower material costs. “That actually helped the supply chain and manufacturer variety, and even some of the costing of HTS … for us to, like, oh, ‘Well, let’s think about that. Now things have changed a little bit,”says Husam Alissa, director of systems technology at Microsoft.
How Microsoft is planning to use HTS cables in its data centres
Microsoft is primarily interested in using HTS in two ways, according to Alissa. Within a data centre, smaller cables would enable greater flexibility in how electrical rooms and hardware racks are laid out. With funding from Microsoft, Massachusetts-based superconducting company VEIR demonstrated last year that HTS cables at a data centre could deliver the same power while reducing cable dimensions and weight by about 10x compared to conventional alternatives.Outside the data centre, Microsoft is open to working with energy companies to support the buildout of long-distance power lines using HTS. Expanding transmission lines has been a bottleneck in updating the power grid, connecting data centres, and building out additional power supply, with approvals for such infrastructure across multiple jurisdictions often taking considerable time.With power lines made of HTS, the space required could shrink. While overhead transmission lines may require an area of approximately 70 metres in width, superconducting cables may require only 2 metres of clearance, according to the Microsoft blog, reducing construction time and costs.Additional interest in HTS for data centres could also enable fusion companies to procure more of the material at lower cost, helping advance nuclear fusion technology. Microsoft has separately reached a deal with another company developing a fusion power plant in Washington state.
