Microsoft and 3M announced a strategic partnership to enhance AI data center infrastructure and drive enterprise transformation. Under the agreement, Microsoft's Azure cloud will be the first major hyperscale provider to deploy 3M's Expanded Beam Optical (EBO) technology. This technology makes fiber optic connections faster to install and more tolerant of contaminants like dust. It improves reliability and reduces deployment timelines in high-density data centers.

The collaboration is reciprocal. 3M will adopt Microsoft's AI and digital platforms across its business functions. These include finance, sales, and customer service. The companies aim to accelerate AI adoption. They will combine 3M's materials science with Microsoft's cloud and AI capabilities. This also strengthens the physical networks required to support cloud computing growth.