Microsoft unveils its first "AI superfactory" - here's what the future of computing will really look like

• The system links distant facilities to run massive training workloads continuously
• High-speed fiber keeps GPUs active by avoiding slow data bottlenecks
• Two-story chip density increases compute power while lowering inter-rack latency

Microsoft has unveiled its first AI superfactory, linking large AI datacenters in Wisconsin and Atlanta through a dedicated fiber network designed for high-speed movement of training data.

The design places chips close together across two floors to increase density and reduce lag.

It also uses extensive cabling and liquid systems arranged to manage the weight and heat produced by large clusters of hardware.

A network built for large-scale model training

In a blog post,, Microsoft said this configuration will support vast AI workloads that differ from the smaller and more isolated tasks common in cloud environments.

“This is about building a distributed network that can act as a virtual supercomputer for tackling the world’s biggest challenges,” said Alistair Speirs, Microsoft general manager focusing on Azure infrastructure.

“The reason we call this an AI superfactory is it’s running one complex job across millions of pieces of hardware…it’s not just a single site training an AI model, it’s a network of sites supporting that one job.”

The AI WAN system moves information across thousands of miles using dedicated fiber, part newly built and part repurposed from earlier acquisitions.

Network protocols and architecture have been adjusted to shorten pathways and keep data moving with minimal delay.

Microsoft claims this allows distant sites to cooperate on the same model training process in near real time, with each location contributing its share of computation.

The focus is on maintaining continuous activity across large numbers of GPUs so that no unit pauses while waiting for results from another location.

“Leading in AI isn’t just about adding more GPUs – it’s about building the infrastructure that makes them work together as one system,” said Scott Guthrie, Microsoft executive vice president of Cloud + AI.

Microsoft uses the Fairwater layout to support the high-throughput rack systems, including Nvidia GB200 NVL72 units designed to scale to very large clusters of Blackwell GPUs.

The company pairs this hardware with liquid cooling systems that send heated fluid outside the building and return it at lower temperatures.

Microsoft states that the operational cooling uses almost no new water, aside from periodic replacement when needed for chemistry control.

The Atlanta site mirrors the Wisconsin layout, providing a consistent architecture across multiple regions as more facilities come online.

“To make improvements in the capabilities of the AI, you need to have larger and larger infrastructure to train it,” said Mark Russinovich, CTO, deputy CISO, and technical fellow, Microsoft Azure.

“The amount of infrastructure required now to train these models is not just one datacenter, not two, but multiples of that.”

The company positions these sites as purpose-built for training advanced AI tools, citing rising parameter counts and larger training datasets as key pressures driving expansion.

The facilities incorporate exabytes of storage and millions of CPU cores for supporting tasks around the primary training workflows.

Microsoft suggests that this scale is necessary for partners such as OpenAI and its own AI Superintelligence Team to continue model development.

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