Microsoft Backs $75M Tech to Cut Data Center Energy Waste

The tech giants powering our AI future just found a way to stop wasting millions of watts of electricity before it even reaches the computers.

Microsoft is backing a breakthrough technology that replaces traditional copper wiring with high-temperature superconductors, special materials that carry electricity with almost no energy loss. The company just invested $75 million into Veir, a startup developing these game-changing cables for data centers.

Here's why it matters. Right now, about 5 percent of all electricity transmitted through power lines simply vanishes as heat. That might not sound like much, but for AI data centers trying to pack massive computing power into small spaces, every watt counts.

The new superconducting cables are smaller, lighter, and don't heat up like copper does. They can carry ten times more power than conventional lines at the same voltage level. For data centers struggling to find enough electricity to run AI systems, that's a serious win.

The technology works by cooling rare-earth materials to cryogenic temperatures using liquid nitrogen, which flows through the cables in a closed loop system. At these frigid temperatures, the materials lose almost all electrical resistance, letting current flow freely without the usual energy drain.

Microsoft already built and tested the world's first high-temperature superconductor-powered server rack at one of its facilities. Ruslan Nagimov, a principal infrastructure engineer at Microsoft, helped demonstrate that the technology can work outside a lab setting.

The costs are still higher than copper, but that's changing fast. Tim Heidel, CEO of Veir, says manufacturing is maturing quickly, especially for the superconducting tape that forms the heart of the cables. As production scales up, prices should drop.

Why This Inspires

This isn't just about making tech companies more efficient. Less wasted electricity means fewer power plants needed and a smaller carbon footprint for the AI revolution transforming our lives. The technology could also help communities by reducing the physical space data centers need, making them better neighbors.

What started in research labs is now getting real-world testing thanks to companies willing to invest in cleaner infrastructure. When the giants lead, others follow.

The same superconductors that once seemed too exotic for everyday use are becoming the practical solution to one of tech's biggest energy challenges.