Data centers are facing escalating power demands, with requirements increasing dramatically from tens of kilowatts to over 200 kilowatts in just a few years. This trend has prompted developers to rethink the architecture of future facilities. Tim Heidel, CEO of VEIR, emphasized this urgency during a recent interview, stating, “In the next couple of years, it’s going to be 600 kilowatts, and then we’re going to a megawatt.” Heidel revealed that companies are now focused on designing data centers capable of supporting multi-megawatt racks.
As data centers expand, even low-voltage cables, which supply power to racks, are becoming cumbersome and generating excessive heat. To address these challenges, VEIR has developed superconducting electrical cables specifically for data center applications. The startup, backed by Microsoft, is set to launch its first product: a cable system that can transport up to 3 megawatts of low-voltage electricity.
Innovative Solutions for Growing Demands
To showcase its technology, VEIR constructed a simulated data center close to its headquarters in Massachusetts. The company plans to pilot its superconducting cables in real data centers next year, ahead of a projected commercial launch in 2027. Superconductors are unique materials that can conduct electricity without any energy loss, yet they must be cooled to temperatures well below freezing to function effectively.
VEIR initially concentrated on leveraging superconductors for long-distance transmission lines. However, the adoption of new technologies within utility sectors tends to be cautious and gradual. While there is potential for superconductors to revolutionize high-demand transmission lines in the future, that transition remains distant.
Heidel remarked on the differences between the data center and transmission industries, noting, “The pace at which the data center community is moving, evolving, growing, scaling, and tackling challenges is far higher than the transmission community.” This has led VEIR to engage in more productive discussions with data centers, particularly as they face complex power management challenges on their campuses.
Designing for Efficiency and Space
VEIR has adapted the technology initially developed for transmission lines to meet the specific low-voltage needs of data centers. The superconductors are sourced from the same suppliers and are encased in jackets designed to contain liquid nitrogen coolant, maintaining the necessary temperature of -196 °C (-321 °F). Termination boxes facilitate the transition from superconducting cables to standard copper cables.
Heidel described VEIR’s role as a systems integrator, stating, “We build the cooling systems, manufacture the cables, and assemble the entire system to deliver an enormous amount of power in a small space.” This innovative design allows VEIR’s cables to occupy 20 times less space than traditional copper cables while transmitting power over distances that are five times greater.
The urgency for solutions in the artificial intelligence and data center sectors is palpable, driven by competitive pressure to innovate and stay ahead. Heidel emphasized the demand for immediate solutions, saying, “The AI and data center community is desperate to find solutions today and is desperate to stay ahead.”
As data centers continue to evolve and face unprecedented power challenges, VEIR’s advancements in superconducting technology could play a crucial role in shaping the future of energy consumption in this rapidly growing industry.
