Microsoft presses Trump to scuttle expected ban on Chinese data center technology
MSFT•Microsoft is urging the Trump administration to halt a potential ban on imports of new Chinese optical transceivers, warning that supply constraints could slow US data center construction. The company has 35 data centers under construction in the US and 134 more planned.
1. Microsoft opposes potential ban
Microsoft has pressed the Trump administration to halt plans to bar imports of new Chinese optical transceivers, three people familiar with the situation said. The components connect data center equipment over fiber-optic cables, and the administration is concerned they could enable data theft, malware installation or service disruptions.
2. Supply constraints concern firms
Microsoft was among companies and trade groups that met with White House and National Security Council officials in September to flag supply-chain challenges. Industry representatives said a ban could slow data center construction and leave purchased AI chips unused while companies wait for transceivers. Microsoft has 35 US data centers under construction and another 134 planned, according to Cleanview.
3. Ban details under discussion
The FCC is working on the ban. Two sources said it is considering a threshold of 3.2 terabits per second, a capacity Morgan Stanley said in an October client note is associated with products not expected to ramp up until 2028, with widespread installation expected in 2029. US-based Coherent and Lumentum make competing technology but lack the scale to replace Chinese vendors, a report by the Foundation for American Innovation said.
