Microsoft & 3M: Optical Connectivity Key in AI Data Centres

Microsoft and 3M are expanding their partnership with a focus on AI data centre infrastructure and enterprise AI, combining hyperscale cloud operations with optical networking technology designed for large-scale deployments.

Under the agreement, Microsoft will become the first announced hyperscale cloud provider to deploy 3M's Expanded Beam Optical (EBO) technology across its Azure Cloud and AI Infrastructure.

Alongside the infrastructure collaboration, 3M will adopt Microsoft's AI and digital platforms to support its own enterprise transformation.

The partnership brings together Microsoft's cloud infrastructure expertise and 3M's materials science and manufacturing capabilities as demand continues to grow for AI-ready data centres capable of supporting increasingly dense computing environments.

Optical connectivity for AI

The data centre element of the partnership centres on 3M's proprietary Expanded Beam Optical technology, which is designed to improve how fibre connections are deployed and maintained in hyperscale environments.

Unlike traditional optical connectors that rely on direct physical contact, EBO technology uses an expanded beam optical interface.

According to 3M, this makes fibre connections quicker to install while making them more tolerant of contamination and easier to maintain throughout their operational life.

Reducing maintenance requirements has become increasingly important as AI clusters continue to grow in size and network complexity.

The technology can reduce the need for routine cleaning and inspection while maintaining optical performance in environments where dust exposure and frequent handling are part of normal operations.

The company also reports that early deployments have demonstrated the potential to shorten network installation timelines in some environments while maintaining reliable signal performance under live operating conditions.

To support wider deployment, 3M is increasing production capacity for the technology as demand grows from hyperscale operators and data centre developers. The company also helped establish the Expanded Beam Optical Multi-Source Agreement to encourage standardisation across the industry.

"At Microsoft, we're redefining the foundation of cloud and AI infrastructure – combining our own innovations with advances from partners like 3M to build data centres that are faster to deploy, more resilient and ready for the scale of AI,” says Cliff Henson, Corporate Vice President, Cloud Supply Chain at Microsoft.

"3M's EBO solution will help unlock new levels of performance, reliability and efficiency to ensure customers can run their cloud and AI workloads on a trusted, sustainable and advanced environment."

Supporting enterprise AI

Alongside infrastructure development, the agreement extends into 3M's own business operations through wider adoption of Microsoft's AI capabilities.

The company plans to deploy Microsoft AI across customer service, finance, sales and marketing as part of an enterprise transformation programme intended to improve operational efficiency and decision-making.

One of the first projects involves Microsoft's Frontier Company initiative, with engineers working alongside 3M's Global Business Services team to automate customer order management.

The companies are developing an AI agent-driven workflow to assist with credit checks, delinquency assessments and system updates while retaining human oversight through monitoring dashboards that provide real-time visibility and approvals.

According to the companies, the system is expected to reduce manual processes, improve consistency and accelerate cash flow while allowing employees to focus on higher-value activities.

"At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences and help our teams work more effectively,” says Jon Van Wyck, Executive Vice President and Chief Strategy Officer at 3M.

"Our collaboration with Microsoft supports that vision through targeted optimisation opportunities for our enterprise while advancing the infrastructure needed to power the future of AI. We are excited to deepen our partnership and develop practical solutions that can create mutual value."

Building AI-ready infrastructure

The partnership reflects continued investment across the data centre sector in networking technologies capable of supporting larger AI deployments.

As AI workloads increase, operators are placing greater emphasis on optical connectivity, deployment speed and maintenance efficiency to manage growing numbers of fibre connections within hyperscale facilities.

Microsoft and 3M say they will continue collaborating across engineering and commercial teams, focusing on areas where materials science, manufacturing and optical connectivity can support evolving infrastructure requirements.

The companies also intend to explore opportunities across Microsoft's wider data centre and device ecosystem, with work centred on improving reliability, deployment speed, network density and long-term scalability.