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Microsoft’s Seattle natural-gas-powered data center was a 20-rack research pilot called the Advanced Energy Lab, announced in 2017. It fed natural gas directly to fuel cells integrated with the IT racks, rather than relying on the usual grid-delivery and on-site electrical-distribution chain. Microsoft and its partners described efficiency, cost, and reliability improvements as possible benefits—not verified results.

What Microsoft launched in Seattle

Microsoft developed the Advanced Energy Lab with Cummins and McKinstry at McKinstry’s Innovation Center in Seattle’s Sodo neighborhood. Microsoft introduced the project as a pilot on September 24, 2017; Cummins said the 20-rack pilot was operational when it opened the lab with its partners on October 25, 2017. The announcements describe a small research facility, not a rollout across Microsoft’s data-center fleet. Microsoft’s announcement · Cummins’ opening announcement

How the natural-gas system worked

Natural gas was piped directly to fuel cells integrated with the IT rack architecture. The idea was to generate power close to the computing equipment, bypassing several steps involved when electricity is generated centrally, transmitted over the grid, and distributed and converted at a data center.

Microsoft’s project leaders said the simpler arrangement “significantly reduces the amount of energy lost in power generation, transmission, and power conversion.” That was the partners’ design rationale, not a published measurement of the Seattle system’s performance. Microsoft said the arrangement “could almost double the energy efficiency of datacenters,” framing that as a possibility. Its September announcement said testing and results were still ahead; the launch materials do not report measured efficiency gains, operating costs, or reliability outcomes. Microsoft’s description of the design and its projected benefits

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Who built and funded the lab

Microsoft, Cummins, and McKinstry conceived and funded the project. Cummins identified Siemens and Washington State’s Department of Commerce as additional funders. McKinstry supplied the facility, engineering, and construction services. The Department of Commerce’s 2018 project profile describes grant-supported testing equipment for air quality, electrical performance, and environmental dynamics, including gas analyzers, building-automation and electrical-monitoring equipment, and an automated fuel-cell repair system. Cummins’ account of the partnership · Washington State Department of Commerce project profile

Safety and certification challenge

The state profile says the fuel-cell equipment used for this project was not UL certified at the time. The project brought in a field UL consultant to work with the City of Seattle on relevant safety standards. According to the profile, permitting and inspection went smoothly after the team worked with the city in advance. This is a record of how the 2017–2018 project addressed its particular equipment and permitting situation; it does not establish the certification status of fuel-cell products generally today. Washington State Department of Commerce project profile

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What is known about results and current status

The public launch announcements establish that the lab progressed from an announced pilot to an operational facility, but they do not provide a final performance report. The sources cited here do not establish whether the Seattle lab is still operating in 2026 or what efficiency, cost, or reliability results it ultimately achieved.

Microsoft’s later natural-gas power agreement with Chevron concerns a separate data-center development in West Texas, not the Seattle Advanced Energy Lab. Chevron’s June 22, 2026 announcement · Data Center Knowledge’s 2017 report on the Seattle pilot

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