Stock Markets February 10, 2026

Microsoft Tests Superconducting Power Lines to Boost Data Center Energy Efficiency

Company trials high-temperature superconductor cables as a means to raise electrical density and reduce infrastructure footprint in large server facilities

By Hana Yamamoto MSFT
Microsoft Tests Superconducting Power Lines to Boost Data Center Energy Efficiency
MSFT

Microsoft has reported testing high-temperature superconducting cables that can carry the same power as conventional conductors while occupying less space. The company says the technology could enable higher electrical density inside data centers without expanding external infrastructure, potentially shortening the time required to energize new large-scale server campuses. Microsoft has not disclosed investment amounts or a deployment timeline, and the cable approach faces cost and manufacturing limitations.

Key Points

  • Superconducting cables tested by Microsoft can carry the same power as conventional conductors while occupying less space, affecting data center design and power distribution.
  • The technology could allow higher electrical density inside facilities without expanding external infrastructure, with implications for technology and energy markets.
  • Microsoft has invested in suppliers such as VEIR, which tested a three megawatt cable and raised $75 million in a Series B round, influencing hardware and manufacturing supply chains.

Microsoft is evaluating the use of high-temperature superconductor power lines in its data centers, a move the company says could improve energy efficiency and help scale its ongoing U.S. data center expansion. Recent internal tests indicate these cables can transmit the same power levels as standard copper or aluminum conductors while taking up less physical space, the company said.

According to Microsoft, the cable technology - which relies on a ceramic-like superconducting material - could permit higher electrical density inside facilities without enlarging external power infrastructure such as substations. Husam Alissa, who heads the Systems Technology Team within Microsoft’s CO+I CTO Office, said the technology "helps us scale power density without expanding our physical footprint" and "can also help us reduce the size of power transmission infrastructure and lower community impact."

Microsoft framed the effort as a response to constraints in the U.S. power system that have complicated rapid build-out and electrification of huge data centers supporting technologies such as artificial intelligence. The company noted that big data center campuses currently under construction may demand more than one gigawatt of electricity at a single site - a level comparable to the power needs of about 750,000 homes - and that U.S. government research projects data center electricity use could reach roughly 12 percent of U.S. power supplies by 2028, a tripling from four years earlier.

High-temperature superconductor cables are not yet a standard element in data center design. They transport electricity more efficiently than conventional copper and aluminum conductors, Microsoft said, and in testing they delivered equal power capacity while occupying less space. That smaller form factor could reduce the physical footprint of internal power distribution and potentially shorten the time needed to bring large server facilities online, the company stated.

Microsoft did not disclose how much it has invested in superconducting technology or when it might deploy the cables at scale. The company has, however, made investments in firms developing the technology. One such company is VEIR, a Massachusetts-based cable manufacturer and cooling system vendor that closed a $75 million Series B funding round last year. VEIR recently completed a test of a three megawatt cable that powered a server rack in a simulated data center environment and said the advanced cables can be more than 10 times smaller and lighter than traditional cables, allowing for a reduced data center footprint.

Despite decades of development, superconducting cable technology has been constrained by high costs and manufacturing limitations, factors Microsoft and its partners will need to address for wider adoption. The company’s announcements focus on potential operational and community benefits, but offer no timetable or dollar figures for commercial rollout.


Summary

Microsoft is testing high-temperature superconducting power cables that could enable higher electrical density inside data centers while reducing the need for larger external transmission infrastructure. The company highlighted the potential for a smaller physical footprint and faster energization of new server campuses, but did not provide investment details or a deployment schedule. The cable technology has long faced cost and manufacturing challenges; VEIR, a supplier Microsoft has invested in, has reported successful tests of a three megawatt cable.

Key points

  • Microsoft's tests indicate high-temperature superconducting cables can deliver equivalent power to traditional conductors while taking up less space - impacting the data center and power infrastructure sectors.
  • The company says the technology could raise electrical density inside facilities without enlarging substations or other transmission infrastructure, potentially shortening the time to power large server campuses - a development relevant to technology and energy markets.
  • Microsoft has invested in superconducting companies, including VEIR, which completed a three megawatt cable test and raised $75 million in a Series B round - relevant to hardware suppliers and industrial manufacturing supply chains.

Risks and uncertainties

  • High costs and manufacturing constraints have limited the adoption of superconducting cables for decades; this technical and economic hurdle affects suppliers and operators in the data center and power equipment industries.
  • Microsoft has not disclosed its investment level in superconducting technology nor provided a timeline for deployment, leaving uncertainty over when or if the technology will be widely implemented in its facilities - a risk for investors and vendors tracking adoption.
  • Broader U.S. power system constraints and the projected rise in data center electricity demand could impede the pace of large campus electrification regardless of advances in cable technology - a concern for utilities and energy infrastructure planners.

Risks

  • High costs and manufacturing constraints have historically limited superconducting cable adoption, posing a challenge to suppliers and operators in the data center and power equipment sectors.
  • Microsoft has not disclosed its investment level or a deployment timetable for superconducting cables, creating uncertainty for vendors, investors, and planners.
  • Existing constraints in the U.S. power system and the projected growth in data center electricity demand could slow the pace of electrification and infrastructure upgrades, affecting utilities and energy infrastructure projects.

More from Stock Markets

Rolls-Royce Poised to Announce Up to £1.5 Billion Share Buyback Alongside Annual Results Feb 22, 2026 DAE Capital Nears Purchase of Macquarie AirFinance, Sources Say Feb 22, 2026 S&P 500 Shows Signs of Tightening Range; Strategist Sees Potential for a Big Move Feb 22, 2026 Supreme Court to Clarify Reach of Helms-Burton Act in Multi-Billion Dollar Cuba Claims Feb 22, 2026 Switzerland Pulling Ahead in Early Economic Gains from AI Feb 22, 2026