3M and Microsoft have announced a strategic partnership aimed at accelerating the development of next-generation AI data center infrastructure and advancing enterprise digital transformation. As part of the collaboration, Microsoft Azure Cloud and AI Infrastructure will become the first publicly announced hyperscale cloud provider to deploy 3M’s Expanded Beam Optical (EBO) technology. In parallel, 3M will leverage Microsoft’s artificial intelligence and digital platforms to support transformation initiatives across critical business functions.
By combining Microsoft’s expertise in cloud computing, AI infrastructure, and hyperscale operations with 3M’s leadership in materials science and precision manufacturing, the companies aim to accelerate AI adoption while strengthening the physical infrastructure required to support growing cloud and artificial intelligence workloads.
Advancing Data Center Infrastructure for the AI Era
As demand for high-performance AI computing continues to increase, Microsoft is focused on developing data center infrastructure that delivers greater efficiency, reliability, scalability, and sustainability. Through this partnership, Microsoft will deploy 3M’s proprietary Expanded Beam Optical (EBO) technology within Azure data centers.
Unlike traditional optical connectors that require direct physical contact, EBO technology uses an expanded beam interface designed to improve connection reliability, simplify installation, and reduce maintenance requirements. The technology is intended to make fiber connections more resistant to contamination, minimize the need for frequent cleaning and inspection, and support consistent optical performance in large-scale, high-density data center environments.
Microsoft’s early deployment experience with EBO technology has demonstrated potential improvements in network installation timelines and reliable signal performance under real-world data center conditions, where equipment handling and environmental exposure are common operational challenges.
3M is expanding production capabilities for its EBO technology to meet increasing demand from hyperscale cloud providers and data center operators building infrastructure for AI workloads. Leveraging decades of expertise in advanced materials, optical connectivity, and manufacturing, 3M has developed single-mode expanded beam optical solutions designed for large-scale data center applications.
The company has also contributed to the development of the EBO Multi-Source Agreement (MSA), supporting industry standardization and broader adoption of expanded beam optical technology across the data center ecosystem.
“At Microsoft, we’re redefining the foundation of cloud and AI infrastructure by combining our own innovations with advances from partners like 3M to build data centers that are faster to deploy, more resilient, and ready for the scale of AI,” said Cliff Henson, Corporate Vice President, Cloud Supply Chain, Microsoft. “3M’s EBO solution will help unlock new levels of performance, reliability, and efficiency, ensuring customers can operate their cloud and AI workloads in a trusted, sustainable, and advanced environment.”
Driving Enterprise AI Transformation at 3M
Beyond infrastructure innovation, 3M will incorporate Microsoft’s AI and digital capabilities into its enterprise transformation strategy, with applications across customer service, finance, sales, and marketing operations.
The collaboration is designed to streamline processes, improve business decision-making, enhance customer experiences, and increase employee productivity through intelligent automation.
One example of this initiative involves Microsoft Frontier Company working with 3M’s Global Business Services team to develop AI-powered workflows for customer order management. The solution will use AI agents to support processes such as credit evaluations, delinquency assessments, and system updates while maintaining human oversight through approval controls and monitoring dashboards.
The AI-driven workflow is expected to reduce manual administrative tasks, improve operational speed and consistency, strengthen governance, and accelerate cash flow management. By automating repetitive activities, 3M employees can focus on higher-value strategic initiatives while enabling scalable and auditable business operations.
“At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences, and help our teams work more effectively,” said Jon Van Wyck, Executive Vice President and Chief Strategy Officer, 3M. “Our collaboration with Microsoft supports this vision through targeted optimization opportunities while advancing the infrastructure needed to power the future of AI. We are excited to deepen our partnership and develop practical solutions that create mutual value.”
Building the Future Through Science and Technology
Microsoft and 3M plan to continue expanding their collaboration through ongoing engineering partnerships, commercial engagement, and joint innovation initiatives. Future efforts will focus on areas where 3M’s expertise in materials science, optical connectivity, and advanced manufacturing can help address evolving demands for data center reliability, deployment speed, computing density, and long-term scalability.
Together, the companies aim to support the continued evolution of AI infrastructure while helping enterprises unlock new opportunities through intelligent technologies and digital transformation.