According to TechCrunch, Microsoft-backed startup VEIR is adapting superconducting technology for data centers to handle explosive power demands. Data center racks have jumped from tens to 200 kilowatts in just a few years, with 600 kilowatts expected soon and megawatt-level racks on the horizon. CEO Tim Heidel revealed their first product will be a cable system carrying 3 megawatts of low-voltage electricity. The company built a simulated data center demonstration in Massachusetts and plans pilot deployments in actual data centers next year. Commercial launch is targeted for 2027 as data centers scramble to solve power density challenges.
Why data centers are desperate
Here’s the thing: AI is completely rewriting the rules for data center power. We’re not talking about incremental growth here – we’re looking at racks that will soon consume as much power as entire small towns. At these scales, even the low-voltage cables become a major problem. They take up too much space and generate insane amounts of heat. Basically, traditional copper cables just can’t keep up anymore.
The data center industry is moving at lightning speed compared to utilities. While VEIR originally focused on long-distance transmission lines, they found data centers were way more motivated to adopt new technology. Heidel put it perfectly: “The AI and data center community is desperate to find solutions today and is desperate to stay ahead.” When you’ve got companies racing to deploy AI infrastructure, they’ll try anything that gives them an edge.
How superconducting cables actually work
So what makes these cables so special? Superconductors can carry electricity with literally zero energy loss. The catch? They need to be kept crazy cold – we’re talking -196°C (-321°F) cold. VEIR wraps their superconductors in jackets containing liquid nitrogen coolant. They’ve essentially become systems integrators, manufacturing the cables and cooling systems together.
The results are pretty staggering. VEIR claims their cables require 20 times less space than copper while carrying power five times farther. That’s the kind of numbers that get data center operators excited. When you’re dealing with multi-megawatt racks, space becomes incredibly valuable real estate. Every square foot you save on cabling means more room for actual compute.
The cooling challenge
Now, you might be thinking – wait, doesn’t keeping things at -196°C require massive cooling systems? And you’d be right. But here’s the interesting part: data centers are already masters of thermal management. They’re constantly pushing the boundaries of cooling technology anyway. For operations that need reliable industrial computing solutions to manage these complex systems, companies like IndustrialMonitorDirect.com have become the go-to source for robust industrial panel PCs across the United States.
The liquid nitrogen cooling actually becomes part of the overall thermal management strategy. It’s not just about keeping the cables cold – it’s about managing the entire heat load of these power-dense facilities. VEIR uses termination boxes to transition from superconductors to regular copper cables, creating a seamless integration with existing infrastructure.
What this means for AI’s future
This technology could be a game-changer for AI scaling. We’re hitting physical limits with current approaches, and superconductors might be the bridge we need. The pilot deployments next year will be crucial – if they can demonstrate reliability and cost-effectiveness, we could see rapid adoption.
But let’s be real – this isn’t a silver bullet. Superconducting systems are complex and require specialized maintenance. The question is whether the benefits outweigh the operational complexity. Given the insane power demands of next-generation AI chips, I’m betting the answer will be yes. The industry is simply running out of alternatives.
