Microsoft boosts data center connectivity with low-cost MicroLED and new optical fiber technologies

Microsoft is advancing new connectivity solutions for data centers aimed at improving energy efficiency and overcoming current infrastructure limitations. The company has introduced developments based on MicroLED technology and hollow core fiber (HCF), two innovations set to transform data transmission in cloud environments.

The MicroLED system has been developed at Microsoft’s research lab in Cambridge (UK), in collaboration with Azure teams. Compared to traditional laser-based systems, this approach promises to reduce energy consumption by up to 50%, addressing one of the key challenges in modern data centers.

As part of its development, Microsoft has conducted a proof of concept with MediaTek and other technology partners to miniaturize the solution and integrate it into transceivers compatible with existing infrastructure. The system uses imaging optical fiber capable of transporting photons through thousands of internal cores, significantly increasing data transmission channels.

Currently, data centers rely on both copper and optical fiber cables for server communication, each with clear limitations. Copper supports high speeds over short distances, while optical fiber requires higher energy consumption. The MicroLED-based alternative aims to overcome these drawbacks by offering a more efficient and robust solution, less sensitive to environmental factors such as temperature or dust.

As explained by Paolo Costa, lead researcher on the project, this technology introduces a new approach to data transmission by enabling photons to be sent through multiple independent channels. Microsoft also highlights its improved reliability compared to traditional optical systems.

Doug Burger, Technical Fellow at Microsoft Research, emphasized the disruptive potential of this innovation: using LEDs to transmit data more cheaply and efficiently could significantly transform global computing infrastructure.

The company expects the technology to reach commercialization by the end of 2027, in collaboration with industry partners.

Hollow core fiber: higher speed and lower latency

Alongside MicroLED, Microsoft is also advancing the deployment of hollow core fiber (HCF), a technology already in use in some Azure regions and gradually expanding worldwide.

According to the company, this solution can increase data transmission speeds by up to 47% and reduce latency by approximately 33% compared to conventional single-mode optical fiber.

Both technologies—MicroLED and HCF—are complementary within Microsoft’s strategy to optimize cloud infrastructure performance. As noted by Frank Rey, Director of Azure Hyperscale Networking, the goal is to deliver faster and more efficient services in response to growing demand for processing and data transmission capacity.