Microsoft and 3M Announce Strategic Partnership for AI Infrastructure and Enterprise AI
Microsoft and 3M announced a strategic partnership where Microsoft Azure will deploy 3M's EBO tech, while 3M adopts Microsoft AI platforms for digital transformation.
July 16, 2026: Microsoft and 3M have announced a strategic partnership that combines AI infrastructure with enterprise AI adoption. Under the agreement, Microsoft Azure will deploy 3M’s Expanded Beam Optical (EBO) technology in its data centers, while 3M will adopt Microsoft’s AI platforms across customer service, finance, sales, marketing, manufacturing, and other business functions, according to Microsoft’s official announcement.
The partnership combines AI infrastructure with enterprise AI by bringing together data center technology and AI-powered business applications.
What does the partnership include?
The agreement has two parts. Microsoft Azure will deploy 3M’s Expanded Beam Optical (EBO) technology in its AI data centers. At the same time, 3M will adopt Microsoft 365 Copilot, Dynamics 365, Microsoft Fabric, Azure AI Foundry, and other Microsoft AI tools across multiple business functions.
How will Microsoft use 3M’s technology?
Microsoft said Azure will become the first announced hyperscale cloud provider to deploy 3M’s Expanded Beam Optical technology. The technology is designed to make fiber-optic connections easier to install and maintain while reducing disruptions caused by dust and other contaminants. Microsoft said early deployments indicate it can also help speed up network installation. Separately, 3M said it is expanding production of the technology and continues to support industry standards for expanded beam optical connectivity, according to 3M’s official announcement.
How will 3M use Microsoft’s AI?
Beyond infrastructure, 3M will use Microsoft’s AI platforms as part of its digital transformation. One of the first projects will automate customer order management. AI agents will assist with credit checks, payment reviews, and system updates while employees continue to review and approve decisions.
According to Microsoft, the company’s Frontier Company engineering team will work with 3M to design and implement these AI solutions across its business operations.
What did Microsoft and 3M say?
Cliff Henson, Corporate Vice President of Cloud Supply Chain and Engineering at Microsoft, said:
“At Microsoft, we’re redefining the foundation of cloud and AI infrastructure, combining our own innovations with advances from partners like 3M to build datacenters that are faster to deploy, more resilient and ready for the scale of AI.”
Jon Van Wyck, Executive Vice President and Chief Strategy Officer at 3M, said:
“At 3M, we view AI as a powerful tool that can accelerate growth, improve customer experiences and help our teams work more effectively.”
Why does the partnership matter for businesses?
The partnership offers a broader view of Microsoft’s AI strategy. Rather than focusing only on AI applications, Microsoft is investing across the technology stack, from Azure infrastructure and data center networking to enterprise AI platforms and implementation services. For organizations planning long-term AI adoption, the partnership highlights that deploying AI at scale increasingly depends on both the technology that powers AI and the systems that integrate it into everyday business operations.
