Microsoft bets on power-saving 'HTS' cables to tame AI's energy appetite — saving space with more efficiently designed data centers

Microsoft has ramped up its efforts on the generative AI front over the past few years, integrating the cutting-edge technology across its products and services. However, it's now apparent that AI requires an incredible amount of electricity, computing power, and cooling water to remain operational.

As it turns out, the software giant has seemingly identified a new and effective way to build data centers with new high-temperature superconductors (HTS). The materials foster the flow of electricity with zero resistance and save space, bolstering layout efficiency for data centers (via The Verge).

These data centers currently use copper wires, which do conduct electricity efficiently. However, HTS cables are reportedly better at the job. What's more, their zero-resistance conduction means the energy lost during the process is significantly reduced. HTS cables are also lighter and far more compact.

The rapid construction of data centers worldwide to fuel AI development has sparked backlash from local communities, largely due to the negative impacts they bring.

In 2024, a report suggested that Microsoft and Google's electricity consumption surpassed the power usage of over 100 countries. As a result, people within close proximity to Microsoft data centers are likely to face a wide range of challenges, including high electricity bills, reduced access to water, pollution, and gentrification.

Until now, HTS cables have seen limited adoption across the industry, largely due to their complexity. There's also the cost implication side of things. For instance, while HTS cables promise zero resistance to electrical current flow, the broader system beyond the cables still needs to be cooled.

Part of its components (HTS tape) are also from rare-earth barium copper oxide material, which is still largely concentrated in China. While speaking to The Verge, experts and analysts warned that Microsoft might be forced to increase the manufacturing of the tape to make it more affordable.

However, top AI research labs are actively exploring alternative power sources to meet AI's enormous demand for electricity, with nuclear fusion at the top of the list. As it happens, the vast majority of manufactured HTS tape is currently used for fusion research. Consequently, this has contributed to a drop in the cost of the material.

Microsoft aims to leverage high-temperature superconductors in a few ways. According to Microsoft's latest blog post on the subject, the tech giant especially wants to leverage the HTS cables in data centers because they are significantly smaller compared to copper wires, which will redefine how its electrical rooms and hardware are laid out.

The company is also willing to work with energy companies to bolster efforts to build long-distance power lines using HTS. If it manages to pull this off, it would have bypassed the challenges that come with updating the power grid and connecting data centers, which usually involve getting approvals across multiple jurisdictions.

Until now, HTS cables have seen limited adoption across the industry, largely due to their complexity. Yet, compared to overhead transmission lines that often require a 70‑meter right‑of‑way, HTS cables may need as little as 2 meters of clearance, offering a far more space‑efficient solution.

Last month, Microsoft announced its plan to build "Community-First" AI infrastructure, which aims to ensure that the data centers don't inflate electricity bills, minimize water use, create jobs for locals, and more.

Do you think HTS cables will solve Microsoft's energy crisis with AI data centers? Let me know in the comments!

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