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Microsoft is the first announced hyperscale cloud provider to make the deployment 3M Expanded Beam Optical (EBO) technology
3M leverages Microsoft AI and digital capabilities to drive business transformation in key functions
ST. PAUL, Minnesota and REDMOND, Washington – July 15, 2026 – 3M (NYSE: MMM) and Microsoft (Nasdaq: MSFT) today announced a strategic partnership focused on AI data center infrastructure and business transformation. Microsoft’s Azure cloud and AI infrastructure will be the first announced hyperscale cloud provider to use 3M’s Expanded Beam Optical (EBO) technology. 3M will also leverage Microsoft’s AI and digital platforms in key business functions as part of its business transformation.
Together, the companies will combine Microsoft’s digital and hyperscale infrastructure with 3M’s materials science and precision manufacturing to accelerate AI adoption and strengthen the physical networks needed to grow cloud and AI workloads.
Innovative data center infrastructure for the AI age
As Microsoft continues to develop a high-performance, efficient and sustainable infrastructure for enterprise and generative AI workloads, the company will deploy 3M’s proprietary EBO technology in Azure data centers.
By using an extended beam optical interface instead of the direct contact required by traditional connectors, EBO technology is designed to make fiber optic connections faster to install, more contamination tolerant and easier to maintain. The technology will help Microsoft reduce the need for frequent cleaning and inspection while supporting reliable optical performance in dense, high-volume deployment environments.
Microsoft’s early adoption of EBO technology has demonstrated the potential to accelerate network deployment timelines in certain environments. The technology has also demonstrated strong signal performance in live data center conditions where dust exposure and routine handling during installation and maintenance are common.
3M is scaling production of its EBO technology to meet increasing demand from hyperscalers and data center operators building the infrastructure required for AI. Building on decades of materials science and precision manufacturing expertise, 3M has advanced single-mode expanded beam optical technology for high-volume data center applications, supporting disciplined commercialization and broader adoption across the data center ecosystem. 3M helped establish the EBO Multi-Source Agreement (MSA) to support standardization and broader adoption of EBO technology in the industry.
“At Microsoft, we are redefining the fundamentals of cloud and AI infrastructure – 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 and engineering at Microsoft. “3M’s EBO solution will help achieve new levels of performance, reliability and efficiency to ensure customers can run their cloud and AI workloads in a trusted, sustainable and advanced environment.”
Enterprise AI transformation
3M will leverage Microsoft’s AI and digital capabilities in key areas of its business transformation roadmap, including customer service, finance, sales and marketing. These efforts will help simplify processes, improve decision-making, strengthen the customer experience and enable higher employee productivity.
A specific example involves the newly formed Microsoft Frontier Company, which employs engineers to help 3M’s Global Business Services team automate the management of customer orders. Both 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 for real-time visibility and approvals. This solution is expected to significantly reduce manual effort, improve process speed and consistency, and accelerate cash flow, freeing up 3M employees for higher-value work and enabling scalable, auditable 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, 3M executive vice president and chief strategy officer. “Our collaboration with Microsoft supports this vision by providing targeted optimization opportunities for our business while advancing the infrastructure required for the future of AI. We look forward to deepening our partnership and developing practical solutions that can create mutual value.”
Shaping the future with science and technology
Microsoft and 3M intend to expand this partnership through ongoing technical collaboration, direct collaboration between engineering and sales teams, and shared innovation opportunities across Microsoft’s data center and device ecosystem, with a focus on areas where 3M’s materials science, optical connectivity and manufacturing capabilities can help meet evolving requirements for reliability, speed of deployment, density and long-term scalability.
About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and developing innovative, customer-focused solutions. Our multidisciplinary team works to solve difficult customer problems by leveraging diverse technology platforms, differentiated capabilities, global presence and operational excellence. Discover how 3M is shaping the future at 3M.com/news.
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the changing needs of our customers. The technology company is committed to making AI widely available and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
Media contacts
3M, [email protected]
Microsoft media relations, We. communication for Microsoft, (425) 638-7777, [email protected]
https://news.microsoft.com/source/2026/07/15/3m-and-microsoft-announce-strategic-partnership-to-advance-ai-data-center-infrastructure-and-enterprise-transformation/
