AI buildout fears: Microsoft, a tech company, reportedly urges Trump admin not to ban Chinese data center parts
Industry warns of construction delays
Reuters reported that Microsoft and several firms and trade groups have argued a ban could slow data center construction and hurt the United States’ lead in AI. Microsoft declined to comment to Reuters and the Daily Caller News Foundation.
John Miller, general counsel of the Information Technology Industry Council, told Reuters the measure could “arguably grind” the data center rollout to a halt. Cleanview counts 35 Microsoft data centers under construction in the United States and 134 more on the drawing board, Reuters reported.
Possible scope of restrictions
The proposed ban would cover new models of Chinese optical transceivers, which carry data over fiber-optic cables inside data centers. Reuters reported that two sources said restrictions may apply only to transceivers capable of carrying 3.2 terabits per second.
Lawmakers cite national security
The Pentagon added Chinese manufacturer InnoLight to its list of Chinese military companies in June, according to a September 25 release from Republican Pennsylvania Sen. Dave McCormick. McCormick said the United States should not depend on China for technologies essential to national security.
Sen. Cornyn said Chinese technology undermines the goal of keeping government communications and information systems safe from foreign interference. A bill described in the release would give suppliers five years to develop compliant sources.
Key points
- Microsoft and other industry groups say a ban could slow AI data center construction.
- The possible restrictions target Chinese optical transceivers used inside data centers.
- Chinese companies account for two-thirds of worldwide optical transceiver sales.
- The administration has not publicly announced whether it will add the parts to a covered list.