Microsoft presses Trump to scuttle expected ban on Chinese data center technology

Microsoft is urging the Trump administration not to prohibit imports of Chinese optical transceivers used to connect equipment in AI data centers, Business Recorder reported on November 10. The company and other industry representatives argue that restricting the devices could slow US data-center construction and weaken the country’s position in artificial intelligence.

Microsoft representatives joined discussions with White House and national security officials in September, according to the report. China supplies about two-thirds of the global market for these components, while US producers Coherent and Lumentum are not currently equipped to replace Chinese suppliers at the same scale. The FCC is considering a possible restriction, including a threshold covering devices handling 3.2 terabits per second, and US lawmakers have separately proposed limits on their use in sensitive government systems.