Microsoft CEO Satya Nadella introduced Project Solara, a new chip-to-cloud platform designed for AI agents, at the Build conference on June 2, 2026. The platform was developed in collaboration with Qualcomm to support an agent-first computing future that shifts focus from traditional operating systems and apps to AI-driven agents. Nadella stated, "There’s a real platform shift. We’re moving from building operating systems, devices for apps, to agents" [1].

Delivering the Build 2026 keynote almost entirely solo aside from demos, Nadella demonstrated a more hands-on role in leading Microsoft’s AI strategy [2]. He also explained how Microsoft manages AI agents by treating them like employees. "You need to give them identities, you need to give them sandboxes, then you need to set policies to govern them," he said. Microsoft has developed Agent 365, which includes Entra and Purview, to oversee AI agents’ identity, access, security, and data labeling [3].

Nadella also addressed community concerns over Microsoft’s expanding AI data centers, citing environmental and electricity usage issues at the event. Microsoft’s Azure cloud currently operates more than 500 data centers across 80 regions. The company added more data center capacity in the last 18 months than in the previous decade [4]. He stated, "How do we ensure that the DCs do not increase electricity prices, making sure that we are replenishing all our water use, creating jobs in the local communities for the local residents, adding to the tax base, making sure we're strengthening the communities by investing in local training and the nonprofits in the area?" [4].

Microsoft claims its data centers use a unique cooling loop system filled once and operating with almost zero water consumption. The water usage is equivalent to the daily consumption of a single restaurant, minimizing environmental impact [4].

The Build conference also revealed Microsoft does not yet support Copilot Cowork integration with non-Anthropic AI models, according to company documentation [2].

Following the Build keynote, Microsoft is expected to expand deployments of Project Solara and Agent 365 across its AI cloud infrastructure in the coming months [1, 3].