Dive Brief:
- 3M and Microsoft have formed a partnership focused on artificial intelligence data center infrastructure and transforming enterprise technologies, the companies announced in a joint press release Wednesday.
- Microsoft’s large scale cloud computing platform Azure will deploy 3M’s expanded beam optical cable connector system at its data centers.
- Meanwhile, 3M will use Microsoft's AI and digital platforms across its operations in an effort to simplify processes, improve decision-making, boost customer experiences and increase employee productivity.
Dive Insight:
The joint effort aims to accelerate AI adoption and improve required physical networks, such as fiber-optic and coaxial cables, used for cloud growth and AI workloads.
Additionally, Microsoft and 3M aim to build on their partnership by collaborating on research and development that focuses on Microsoft’s data center and device marketplace. In addition to chemicals, 3M also manufactures electronic components, coatings and adhesives.
Microsoft is in the midst of expanding its global data center footprint. The software company announced in January 2025 its plans to spend about $80 billion on AI-enabled data centers to train large language models and deploy machine intelligence and cloud-based applications.
Microsoft currently operates over 400 data centers worldwide, according to its annual 2025 report. The company completed construction in June on the first of two data centers in Mount Pleasant, Wisconsin, which is fully operational.
“At Microsoft, we're redefining the foundation of cloud and AI infrastructure — combining our own innovations with advances from partners like 3M to build datacenters that are faster to deploy, more resilient and ready for the scale of AI,” Cliff Henson, corporate vice president of cloud supply chain and engineering at Microsoft, said in a statement.
Microsoft and 3M are also part of an alliance focused on advancing an open, interoperable specification for EBO connectivity products in the AI end-market called Expanded Beam Optics Multi-Source Agreement Group. 3M joined the MSA in May, building on its commitment to make progress on new data center technologies through materials science targeting reliable connectivity, heat and power and resilient infrastructure at a massive scale. As of July 7, the MSA has 44 members, including AMD, Foxconn, Nvidia, Oracle and Meta.
3M is also investing toward expanding its EBO manufacturing capacity. In March, the chemical giant announced plans to spend an undisclosed amount to add new manufacturing equipment and production space to meet the global demand for high-speed interconnects in AI data centers.
“[The EBO is] sort of like an easy click between two pieces of multi-fiber device [peripherals] that come together,” 3M CEO Bill Brown said during a first quarter earnings call in April. “We can put that together in 80% less time with a less trained technician; better reliability, can operate in a dusty environment, which is why it's gotten some good take rate. We've had at least a validation by at least one hyperscaler, a second one is in testing. I expect that will be positive as well.”
3M also had a “fairly large order” come in during Q1, Brown said, putting the company in “a ramp-up mode” to double capacity around the end of the year.
“We’re investing quite significantly to expand capacity, relying on other partners in the space,” Brown said. “Hyperscalers won't go with a single source of supply. So we've got to make sure we have some dual source, either a couple of factories or us with a contract manufacturer.”
