Data centers are consuming more power than ever before. In just a few years, their power demands have jumped from tens of kilowatts to nearly 200 kilowatts per rack. This rapid surge has left developers rethinking how to design data centers that can handle even greater loads in the near future.
How Fast Are Data Center Power Needs Growing?
According to Tim Heidel, CEO of VEIR, the demand curve is only accelerating.
“In the next couple of years, it’s going to be 600 kilowatts, and then we’re going to a megawatt,” Heidel told TechCrunch.
Developers are now exploring architectures for multi-megawatt racks that require entirely new approaches to power delivery and efficiency.
At such extreme scales, even standard low-voltage copper cables become inefficient. They consume too much space, emit too much heat, and limit the ability to scale sustainably.
VEIR’s Breakthrough: Superconducting Cables for Data Centers
To solve these challenges, VEIR, a Microsoft-backed startup, has introduced a superconducting cable system designed specifically for data centers. The company’s first product can carry up to 3 megawatts of low-voltage electricity, making it a game-changer for the next generation of high-performance computing environments.
VEIR demonstrated this groundbreaking technology in a simulated data center near its Massachusetts headquarters. Pilot installations are expected to begin next year, with full commercial deployment planned for 2027.
What Makes Superconductors So Special?
Superconductors are materials capable of conducting electricity with zero energy loss. However, they need to operate at ultra-low temperatures, typically maintained using liquid nitrogen.
Previously, VEIR focused on applying its superconducting technology to long-distance power transmission lines. But large utilities often move slowly in adopting new infrastructure innovations. The data center industry, in contrast, is evolving rapidly — creating the perfect environment for superconducting solutions.
“The data center community is growing, evolving, and scaling faster than the transmission sector,” Heidel explained.
Why Data Centers Are Turning to VEIR
As global demand for artificial intelligence, cloud computing, and big data processing continues to surge, energy consumption has become a serious bottleneck. VEIR has noticed a shift in its discussions with potential clients.
Many companies now recognize that their biggest energy challenges are inside their campuses, not just at the grid level.
By adapting its transmission-grade superconducting technology for low-voltage applications, VEIR offers a solution that combines massive power delivery with compact design. Each cable is wrapped in a protective jacket that holds liquid nitrogen coolant, keeping it at a frigid –196°C (–321°F). Termination boxes transition the superconductors into traditional copper lines seamlessly.
A Compact, High-Power Solution
VEIR positions itself as a systems integrator, designing and building the entire ecosystem — from the cooling systems to the superconducting cables. The result is astonishing: these cables occupy 20 times less space than copper while transmitting electricity five times farther without performance loss.
“We build complete systems that deliver enormous power efficiently in a very small footprint,” Heidel said.
Why It Matters for the AI and Cloud Industry
With the explosive rise of AI workloads, machine learning models, and data-driven services, the tech industry is under pressure to find energy-efficient solutions. Traditional infrastructure can’t keep pace with the growing electricity demand.
VEIR’s superconducting approach could redefine the way AI data centers are powered. By significantly reducing heat generation and spatial requirements, it helps operators maintain performance while staying energy-efficient — a critical factor in meeting sustainability goals.
“The AI and data center community is desperate for solutions to stay ahead of demand,” Heidel added.
“There’s intense competitive pressure to lead this technological shift.”
The Road Ahead
As VEIR prepares for real-world deployments, its innovation could mark the beginning of a new era for data center infrastructure. With support from Microsoft and growing interest across the tech sector, superconducting cables might soon become a standard component in powering the digital future.
✅ Key Takeaways
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Data center power demands are rising rapidly — expected to reach 1 megawatt per rack.
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VEIR, backed by Microsoft, developed superconducting cables that carry 3 megawatts of power efficiently.
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These cables need liquid nitrogen cooling and use 20× less space than copper.
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Commercial rollout is planned for 2027.