New York, Feb 10, 2026, 12:23 EST
- With grid limitations stalling data center expansions in the U.S., Microsoft is testing high-temperature superconductor power lines as a potential solution.
- The company reports that initial tests indicate these cables can deliver the same power as traditional lines but occupy less space.
- High costs, cooling demands, and supply constraints may confine the technology to pilot phases for an extended period.
Microsoft is testing high-temperature superconductor power lines for its data centers, aiming to boost energy efficiency and accelerate the rollout of new U.S. sites limited by current power infrastructure. (Source: Reuters)
The timing couldn’t be tougher. As Big Tech races to power massive AI server farms, aging grids and limited electricity supplies are slowing down hookups for these new data centers.
This matters since power equipment, not physical space, is becoming the main bottleneck. Microsoft references U.S. government research indicating data centers could consume roughly 12% of U.S. electricity by 2028—three times the proportion from just four years ago. Meeting that demand means scaling up both generation and transmission capacity.
High‑temperature superconductors, or HTS, are materials that transmit electricity with almost no resistance once cooled, drastically reducing the losses seen in standard copper and aluminum wiring. Microsoft reported that their tests show HTS cables can carry the same electrical load as traditional cables but in a much smaller form factor.
“This technology lets us boost power density without having to increase our physical footprint,” said Husam Alissa, head of a systems technology team within Microsoft’s data center engineering group.
Microsoft is pitching the appeal with a focus on practical benefits: denser power delivery within buildings and reducing reliance on expanding nearby infrastructure like substations, which often face slow permitting and construction. The company hasn’t revealed how much it has invested in superconducting technology or when it plans to roll out these cables in live data centers.
Microsoft highlighted efforts by VEIR, a Massachusetts cable manufacturer and cooling-system provider it supports. VEIR raised $75 million in a Series B round last year and recently trialed a 3-megawatt superconducting cable running a server rack inside a simulated data center, the company said.
Just beyond the campus boundary, Microsoft is exploring how superconducting cables might reshape transmission layouts. Ziad Melhem, a professor in practice at Lancaster University, stated, “The future data center will be superconducting.” MIT nuclear engineering professor Dennis Whyte described the change as “an obvious evolution” given the rising power needs of data centers. (Source: The Verge)
The investment community is taking note. Finimize pointed out that if this technology holds up, it might shift spending away from traditional copper-heavy setups toward makers of specialized cables and the cooling systems essential for superconductors. Access to electricity could become a much tougher competitive edge across the industry. (Source: Finimize)
Rivals expanding massive AI and cloud operations hit a familiar snag: delivering enough power quickly to one spot to stay on schedule. Microsoft contends that using smaller, lighter cables might also shrink the local electrical infrastructure footprint—a hot-button topic in communities resisting data center expansion.
The downside is well-known to anyone following superconductors over time. These cables need cooling—usually with liquid nitrogen—and depend on specialized materials and manufacturing processes that drive up costs and restrict supply. As a result, their use remains confined to niche applications instead of widespread grid improvements.
Microsoft views HTS mainly as a potential fix for a current bottleneck, not a finished solution. Tests have shown encouraging results, but the company hasn’t committed to a timeline for making superconducting power lines standard in its data centers — or even if it will at all.
