Announcing Cobalt 200: Azure’s next cloud-native CPU

By Selim Bilgin, Corporate Vice President, Silicon Engineering, and Pat Stemen, Vice President, Azure Cobalt

Today, we’re thrilled to announce Azure Cobalt 200, our next-generation Arm-based CPU designed for cloud-native workloads. 

Cobalt 200 is a milestone in our continued approach to optimize every layer of the cloud stack from silicon to software. Our design goals were to deliver full compatibility for workloads using our existing Azure Cobalt CPUs, deliver up to 50% performance improvement over Cobalt 100, and integrate with the latest Microsoft security, networking and storage technologies.

Like its predecessor, Cobalt 200 is optimized for common customer workloads and delivers unique capabilities for our own Microsoft cloud products. Our first production Cobalt 200 servers are now live in our datacenters, with wider rollout and customer availability coming in 2026.

Azure Cobalt 200 SoC and platform

Building on Cobalt 100: Leading Price-Performance

Our Azure Cobalt journey began with Cobalt 100, our first custom-built processor for cloud-native workloads. Cobalt 100 VMs have been Generally Available (GA) since October of 2024 and availability has expanded rapidly to 32 Azure datacenter regions around the world.

In just one year, we have been blown away with the pace that customers have adopted the new platform, and migrated their most critical workloads to Cobalt 100 for the performance, efficiency, and price-performance benefits. 

Cloud analytics leaders like Databricks and Snowflake are adopting Cobalt 100 to optimize their cloud footprint. The compute performance and energy-efficiency balance of Cobalt 100-based virtual machines and containers has proven ideal for large-scale data processing workloads.

Microsoft’s own cloud services have also rapidly adopted Azure Cobalt for similar benefits. Microsoft Teams achieved up to 45% better performance using Cobalt 100 than their previous compute platform. This increased performance means less servers needed for the same task, for instance Microsoft Teams media processing uses 35% fewer compute cores with Cobalt 100.

Designing Compute Infrastructure for Real Workloads

With this solid foundation, we set out to design a worthy successor – Cobalt 200.

We faced a key challenge: traditional compute benchmarks do not represent the diversity of our customer workloads. Our telemetry from the wide range of workloads running in Azure (small microservices to globally available SaaS products) did not match common hardware performance benchmarks. Existing benchmarks tend to skew toward CPU core-focused compute patterns, leaving gaps in how real-world cloud applications behave at scale when using network and storage resources. Optimizing Azure Cobalt for customer workloads requires us to expand beyond these CPU core benchmarks to truly understand and model the diversity of customer workloads in Azure.

As a result, we created a portfolio of benchmarks drawn directly from the usage patterns we see in Azure, including databases, web servers, storage caches, network transactions, and data analytics. Each of our benchmark workloads includes multiple variants for performance evaluation based on the ways our customers may use the underlying database, storage, or web serving technology. In total, we built and refined over 140 individual benchmark variants as part of our internal evaluation suite.

With the help of our software teams, we created a complete digital twin simulation from the silicon up: beginning with the CPU core microarchitecture, fabric, and memory IP blocks in Cobalt 200, all the way through the server design and rack topology. Then, we used AI, statistical modelling and the power of Azure to model the performance and power consumption of the 140 benchmarks against 2,800 combinations of SoC and system design parameters: core count, cache size, memory speed, server topology, SoC power, and rack configuration. 

This resulted in the evaluation of over 350,000 configuration candidates of the Cobalt 200 system as part of our design process. This extensive modelling and simulation helped us to quickly iterate to find the optimal design point for Cobalt 200, delivering over 50% increased performance compared to Cobalt 100, all while continuing to deliver our most power-efficient platform in Azure.

Azure Cobalt 200 SoC

Cobalt 200: Delivering Performance and Efficiency

At the heart of every Cobalt 200 server is the most advanced compute silicon in Azure: the Cobalt 200 System-on-Chip (SoC). The Cobalt 200 SoC is built around the Arm Neoverse Compute Subsystems V3 (CSS V3), the latest performance-optimized core and fabric from Arm. Each Cobalt 200 SoC includes 132 active cores with 3MB of L2 cache per-core and 192MB of L3 system cache to deliver exceptional performance for customer workloads. 

Power efficiency is just as important as raw performance. Energy consumption represents a significant portion of the lifetime operating cost of a cloud server. One of the unique innovations in our Azure Cobalt CPUs is individual per-core Dynamic Voltage and Frequency Scaling (DVFS). In Cobalt 200 this allows each of the 132 cores to run at a different performance level, delivering optimal power consumption no matter the workload.  We are also taking advantage of the latest TSMC 3nm process, further improving power efficiency.

Azure Cobalt 200 SoC architecture diagram

Security is top-of-mind for all of our customers and a key part of the unique innovation in Cobalt 200. We designed and built a custom memory controller for Cobalt 200, so that memory encryption is on by default with negligible performance impact. Cobalt 200 also implements Arm’s Confidential Compute Architecture (CCA), which supports hardware-based isolation of VM memory from the hypervisor and host OS.

When designing Cobalt 200, our benchmark workloads and design simulations revealed an interesting trend: several universal compute patterns emerged – compression, decompression, and encryption. Over 30% of cloud workloads had significant use of one of these common operations. 

Optimizing for these common operations required a different approach than just cache sizing and CPU core selection. We designed custom compression and cryptography accelerators – dedicated blocks of silicon on each Cobalt 200 SoC – solely for the purpose of accelerating these operations without sacrificing CPU cycles. These accelerators help reduce workload CPU consumption and overall costs. For example, by offloading compression and encryption tasks to the Cobalt 200 accelerator, Azure SQL is able to reduce use of critical compute resources, prioritizing them for customer workloads.

Leading Infrastructure Innovation with Cobalt 200

Azure Cobalt is more than just an SoC, and we are constantly optimizing and accelerating every layer in the infrastructure.

The latest Azure Boost capabilities are built into the new Cobalt 200 system, which significantly improves networking and remote storage performance. Azure Boost delivers increased network bandwidth and offloads remote storage and networking tasks to custom hardware, improving overall workload performance and reducing latency.

Cobalt 200 systems also embed the Azure Integrated HSM (Hardware Security Module), providing customers with top-tier cryptographic key protection within Azure’s infrastructure, ensuring sensitive data stays secure. The Azure Integrated HSM works with Azure Key Vault for simplified management of encryption keys, offering high availability and scalability as well as meeting FIPS 140-3 Level 3 compliance.

An Azure Cobalt 200 server in a validation lab

Looking Forward to 2026

We are excited about the innovation and advanced technology in Cobalt 200 and look forward to seeing how our customers create breakthrough products and services. We’re busy racking and stacking Cobalt 200 servers around the world and look forward to sharing more as we get closer to wider availability next year.

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