3M and Microsoft Partner on AI Data Center Optical Tech

On July 15, 2026, 3M Company (MMM) announced a strategic partnership with Microsoft (MSFT) centered on artificial intelligence and cloud infrastructure. Under the agreement, Microsoft Azure will become the first hyperscale cloud to deploy 3M’s Expanded Beam Optical technology in its AI-dedicated data centers. In return, 3M will adopt Microsoft’s AI and digital platforms across its core business functions.

The Product

3M’s Expanded Beam Optical technology is an optical connectivity solution designed to improve efficiency and reliability in high-density data centers, particularly those supporting AI workloads. The technology aims to reduce signal loss and enhance performance in compute-intensive environments.

Pricing and Availability

Pricing details and deployment timeline have not been disclosed. The initial rollout is expected to begin in select Azure data centers in the coming months.

Competition

3M faces competition from companies like Corning and Lumentum in the data center optical connectivity market. However, the exclusive partnership with Azure could give 3M a competitive edge in the rapidly growing AI infrastructure segment.

Potential Impact on the Company

The partnership represents a significant step for 3M to expand its presence in the AI infrastructure market, while Microsoft strengthens Azure’s competitive capabilities. The collaboration could boost 3M’s revenue from the technology sector, though the tangible financial impact has yet to be determined.