Microsoft will become the first announced hyperscale cloud provider to deploy 3M's Expanded Beam Optical technology in A

Microsoft and 3M announced a strategic partnership on July 15, 2026, combining cloud infrastructure and AI with advanced materials science. Microsoft's Azure Cloud and AI Infrastructure will deploy 3M's proprietary Expanded Beam Optical (EBO) technology in data centers to support the physical networks required for cloud and AI workloads.

The EBO technology uses an expanded beam optical interface instead of the direct contact required in traditional connectors, making fiber connections faster to install, more tolerant of contamination and easier to maintain. By reducing the need for frequent cleaning and inspection, the technology supports reliable optical performance in dense, high-volume deployment environments. Microsoft's early use of EBO has demonstrated the potential to reduce network deployment timelines in certain environments and has shown strong signal performance in live data center conditions where dust exposure and routine handling are inherent to installation and maintenance. 3M is scaling production to meet accelerating demand from hyperscalers and data center operators.

In parallel, 3M is deploying Microsoft's AI and digital capabilities across customer service, finance, sales and marketing as part of its enterprise transformation. A specific example involves Microsoft Frontier Company engineers helping 3M's Global Business Services team automate customer order management. The companies are collaborating on an AI agent-driven workflow to assist with credit checks, delinquency assessments and system updates, with human-in-the-loop controls and a custom monitoring dashboard. This solution is expected to significantly reduce manual effort, improve process speed and consistency, and accelerate cash flow.

Cliff Henson, corporate vice president of Cloud Supply Chain at Microsoft, stated: "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." Jon Van Wyck, executive vice president and chief strategy officer at 3M, said: "At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences and help our teams work more effectively."

The partnership builds on 3M's decades of materials science and precision manufacturing expertise and includes collaboration between engineering and commercial teams across Microsoft's data center and device ecosystem.