- Microsoft is exploring superconducting power lines for its AI data centers to improve energy efficiency and scale power density without expanding physical footprint.
- The company is reducing reliance on OpenAI by developing its own AI models and expanding sovereign cloud partnerships.
- Wall Street remains bullish on MSFT, with firms like Piper Sandler and DA Davidson maintaining high price targets of up to $650.
This week, tech giant Microsoft announced it is exploring the use of superconducting power cables for its AI data centers, a strategic move that could accelerate its massive U.S. build-out of server infrastructure. The company indicated this technology could make its facilities more energy-efficient and powerful without requiring significant new physical space.
Recent tests have reportedly shown these high-temperature superconductor cables can deliver the same electricity as traditional cables more compactly. Consequently, this allows Microsoft to increase electrical density inside its data centers without expanding substations and other external infrastructure.
“The technology helps us scale power density without expanding our physical footprint,” stated Husam Alissa, an executive at Microsoft‘s CO+I CTO Office. He further noted it could reduce the size of power transmission infrastructure, lowering the impact on local communities.
However, Microsoft did not disclose its financial investment in the technology or a specific deployment timeline for its data centers. Meanwhile, the company is developing its own AI models and expanding sovereign cloud deals to reduce reliance on its partner, OpenAI.
This strategy is crucial for maintaining competitiveness in the rapidly evolving AI sector. Consequently, Wall Street sentiment remains strongly positive, as most firms maintain bullish ratings on MSFT stock, which trades just above $400.
On February 3, Piper Sandler maintained an Overweight rating and a $600 price target, citing a supportive backdrop for hyperscalers. Meanwhile, Bernstein has a $645 forecast for 2026, and DA Davidson recently upgraded its rating to Buy with a target of $650.
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