Microsoft’s superconducting cables could put AI data centers on a “power diet”

What happened

Microsoft revealed that it’s actively testing high‑temperature superconductors (HTS) to move electricity inside and around its AI data centers more efficiently. Superconductors carry power with virtually zero resistance when cooled, which could let Microsoft pack far more power into a smaller footprint—exactly what the AI boom is starving for. The company framed HTS as a way to boost capacity, cut losses, and ease pressure on local grids and communities.

Industry coverage yesterday underscored the point: relying on HTS cables could shrink bulky copper runs and substation hardware, letting operators deliver the same power through tighter corridors and trenches. In other words, denser power without bigger boxes. Reports also note Microsoft is evaluating HTS with partners and pilots as it studies how to deploy the tech at scale.

Why it matters (and why you might actually feel it)

AI data centers are beginning to look like electric cities. Forecasts cited this week warn US data centers could consume roughly 12% of the nation’s electricity by 2028—triple their share from just a few years ago. That growth risks higher bills, slower grid connections, and more “not in my backyard” standoffs near new facilities. If HTS really can deliver more juice with less space and waste, it’s a partial pressure valve for the grid and for neighborhoods that don’t want a substation the size of a stadium next door.

There’s a reality check, too. HTS needs constant cooling, and most deployments today are still pilots. A recent demo by VEIR pushed 3 megawatts through an HTS cable in a simulated data‑center setup—impressive, but a long way from the gigawatt campuses hyperscalers now plan. Translation: the physics is friendly, the engineering still has homework.

The bigger picture: everyone is racing the same bottleneck

Microsoft’s flirtation with superconductors fits a pattern: as AI models grow, power and plumbing matter as much as processors. Just look at Cisco. Yesterday, it lifted its full‑year outlook, explicitly crediting AI‑driven demand for networking gear—evidence that money is pouring not only into GPUs, but into the cables, switches, and routers that keep clusters humming. The same arms race that fuels faster chips is also forcing fresh thinking about how to wire, cool, and energize them.

Media coverage has also highlighted why Microsoft cares about density: communities and regulators are pushing back on sprawling electrical infrastructure, and grid queues are long. HTS is attractive because it can move the same power with far less bulk—think spaghetti‑thin super‑cables instead of pylons that look like they bench‑press neighborhoods. That’s not just greener optics; it could accelerate timelines for bringing new AI capacity online.

How it connects to other recent news

• AI’s infrastructure squeeze: Reports in recent weeks have chronicled how energy constraints are slowing data‑center rollouts. Microsoft positioning HTS as a fix slots cleanly into that narrative and complements experiments across the industry with on‑site generation, advanced cooling, and smarter grid ties.
• From chips to cables: Even as vendors launch flashier AI silicon, the networking and power layers are getting equal attention—because a cluster is only as fast as its slowest link or thinnest wire. Cisco’s upbeat guidance on AI orders is one more sign the “hidden” stack is now center stage.

What to watch next

Short term: Expect more pilots. If Microsoft and partners can prove that HTS trunks are reliable, serviceable, and cost‑competitive (cooling systems included), utilities and local planners may warm up—ironically—to colder cables. Keep an eye out for multi‑megawatt trials connecting actual server halls, not just test rigs.

Medium term: If HTS scales, data centers could go on a “power diet”: more watts per meter, fewer land fights, and faster go‑lives. That could ripple into consumer life in subtle ways—smoother AI services, fewer headline‑grabbing brownouts, and perhaps less sticker shock in power‑constrained regions.

Long term (the fun speculation): Pair denser, cooler power lines with modular nuclear, long‑duration storage, and better heat reuse, and tomorrow’s AI hubs start to look like compact, symbiotic power neighborhoods. Your smart fridge won’t care, but your city planner will. And if the phrase “superconducting suburbs” ever trends, you can say you heard it when it still sounded a bit like science fiction.

The bottom line

HTS won’t replace transformers and copper overnight, but Microsoft’s move signals a pragmatic shift: beating AI’s power crunch may depend as much on clever wires as on clever code. If the pilots pan out, the biggest winner could be everyday life—where the AI you use disappears into the background, and the only thing you notice is that your lights stay on while the future gets wired in.