Microsoft presses Trump to scuttle ban on Chinese data center tech

Microsoft and other technology firms, along with industry groups, are urging the Trump administration to suspend plans to ban Chinese optical transceiver imports, according to sources familiar with the matter. The proposed ban, reportedly under consideration in August, would target new models of these components used in artificial intelligence data centers. Optical transceivers are crucial for enabling data transmission at the speed of light within data centers via fiber-optic cables.

The primary concern surrounding the proposed ban is that Beijing could exploit the technology to engage in data theft, malware installation, or service disruption at U.S. data centers. Microsoft, currently constructing 35 data centers in the United States and planning an additional 134, is among the companies advocating for the administration to reconsider the ban. They argue that such a ban could severely hinder the U.S. competitive edge in the AI race, potentially slowing down the rollout of data centers.