Microsoft presses Trump to scuttle ban on Chinese data center tech

Microsoft, along with other companies and trade groups, is making a case that a ban on imports of Chinese optical transceivers could irreparably damage the U.S. edge over China in the AI race. | REUTERS

Nov 11, 2026

WASHINGTON – Microsoft and other companies and trade groups have pressed the administration of U.S. President Donald Trump to halt plans to bar imports from China of a key component used in artificial intelligence data centers, three people familiar with the situation said.

In August, the Trump administration was reported to be seeking a ban on U.S. imports of new models of Chinese optical transceivers, which allow data to travel over fiber-optic cables at the speed of light within data centers. The concern is that they could be used by Beijing to steal data, install malware or disrupt service at U.S. data centers.

Microsoft has 35 data centers under construction in the U.S. and another 134 planned, according to Cleanview, a market intelligence company that tracks data center development. It is one of a group of companies and trade groups making the case to the Trump administration that such a ban could irreparably damage the U.S. edge over China in the AI race by further slowing the data center rollout, the sources said.

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