Microsoft is exploring the use of high-temperature superconductors (HTS) to revolutionize data center design and energy infrastructure, aiming to drastically reduce space, improve efficiency, and lower environmental impact. The tech giant believes that HTS materials, which allow electricity to flow with zero resistance, could transform how data centers are built and how power is transmitted to them. Today’s data centers and power grids rely on copper wiring, which, while effective, suffers from energy loss and requires bulky infrastructure. HTS cables, in contrast, can carry large electrical currents without resistance, minimizing energy waste and enabling much smaller, lighter cables. These cables are already used in specialized applications like MRI machines and have been tested in short power lines in cities such as Paris and Chicago. However, widespread adoption has been limited by technical and economic challenges. HTS materials must be cooled to very low temperatures—often using liquid nitrogen—to function. They are typically made from rare-earth barium copper oxide, a material whose supply chain remains heavily concentrated in China. Manufacturing capacity for HTS tape has also been insufficient to meet large-scale demand, making it expensive and difficult to deploy. Recent growth in generative AI has increased demand for power, driving renewed interest in advanced energy solutions. This surge has accelerated research into nuclear fusion, a clean energy source that relies heavily on HTS materials. As fusion projects like SPARC—led by MIT and Commonwealth Fusion Systems—scale up, they’ve helped expand HTS manufacturing, improve supply chain diversity, and reduce material costs. Microsoft is now leveraging this progress. With support from the company, Massachusetts-based VEIR demonstrated that HTS cables in a data center could deliver the same power as conventional cables while reducing cable size and weight by about 10 times. This could allow for more flexible, compact data center layouts and greater power density in server rooms. Beyond data centers, Microsoft is considering HTS for long-distance power transmission. Traditional overhead power lines require wide corridors—up to 70 meters—due to safety and interference concerns. Superconducting cables, by contrast, could operate safely within just 2 meters of clearance, significantly reducing land use and streamlining permitting and construction. Experts like Dennis Whyte of MIT and Ziad Melhem of Lancaster University see this as a natural evolution of HTS technology. The increased demand from data centers could further drive down HTS costs and boost fusion research, creating a mutually beneficial cycle. Microsoft’s broader vision includes collaborating with energy providers to modernize the grid. By integrating HTS into both data center infrastructure and transmission networks, the company aims to build faster, more efficient, and less intrusive systems—helping meet the rising energy needs of AI while reducing environmental and community impacts.