At its Ignite conference on Tuesday, Microsoft announced two new infrastructure chips designed to optimize data center operations for artificial intelligence (AI) and bolster data security. The announcement reflects Microsoft’s investment in custom silicon to reduce dependency on third-party processors and enhance performance.

Optimizing AI and Security in Data Centers
The two chips, developed in-house, will be integral to Microsoft’s cloud infrastructure:
Azure Integrated HSM (Hardware Security Module): This security-focused chip will be deployed in every new server starting next year. It safeguards sensitive encryption and security data within a secure module.
Data Processing Unit (DPU): The DPU consolidates multiple server components into a single chip, optimized for cloud storage tasks. Microsoft claims the DPU achieves three times lower power consumption and four times the performance compared to existing hardware.
These advancements aim to “optimize every layer of infrastructure,” ensuring that Microsoft’s data centers can process data at the speed required for cutting-edge AI, according to Rani Borkar, Corporate Vice President of Azure Hardware Systems and Infrastructure, Reuters news report said.
Reducing Reliance on External Processors
By designing custom chips, Microsoft joins industry leaders like Amazon and Google in reducing dependence on external processors from companies like Intel and Nvidia. Custom silicon allows for tailored solutions, offering both performance improvements and cost savings for specific applications.
Enhanced Cooling Systems for AI Workloads
Microsoft also introduced a new liquid cooling system for its data center servers. This system reduces the temperature of components surrounding servers, making it ideal for supporting large-scale AI systems. Effective cooling is critical as the demand for AI-powered services grows.
Commitment to AI-Driven Infrastructure
Microsoft’s efforts to innovate its infrastructure align with its broader strategy of integrating AI across its cloud offerings. With these chips and new cooling technologies, the company aims to stay ahead in the competitive cloud and AI market while ensuring enhanced efficiency and security for its data centers.
The new chips are expected to support Microsoft’s AI ambitions while meeting the growing demand for secure, efficient, and scalable cloud services.