{"slug": "exclusive-microsoft-presses-trump-to-scuttle-expected-ban-on-chinese-data-center", "title": "Exclusive-Microsoft presses Trump to scuttle expected ban on Chinese data center technology", "summary": "Microsoft has been lobbying the Trump administration to halt a planned Federal Communications Commission ban on US imports of new Chinese optical transceivers used in AI data centers, according to three people familiar with the situation cited by Reuters. Microsoft, which has 35 US data centers under construction and another 134 planned per Cleanview, joined other firms and trade groups in a September meeting with the White House Office of Science and Technology Policy and the National Security Council to flag supply chain problems; ITI general counsel John Miller said a ban \"really threatens to arguably grind (the data center rollout) to a halt.\" China holds two-thirds of the global optical transceiver market per Counterpoint Research, with firms including Eoptolink and Zhongji Innolight dominating supply.", "body_md": "By Alexandra Alper\n\nWASHINGTON, Nov 10 (Reuters) - Microsoft has been pressing the Trump administration to halt plans to bar Chinese imports of a key component used in AI data centers, three people familiar with the situation said.\n\nReuters reported in August that the Trump administration wants to ban US 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 US data centers.\n\nMicrosoft has 35 data centers under construction in the US and another 134 planned, according to Cleanview, a market intelligence company which 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 US edge over China in the AI race by further slowing the data center rollout, the sources said.\n\nThe cloud and software company was one of a handful of firms that met with officials from the White House Office of Science and Technology Policy and the National Security Council in September to flag the supply chain challenges that any such ban would present, two of the sources said.\n\n\"It really threatens to arguably grind (the data center rollout) to a halt,\" said John Miller, general counsel of the Information Technology Industry Council (ITI), a tech lobbying group, which has publicly urged the administration not to move forward with a ban.\n\nHe said many cloud companies have already purchased the AI chips needed for the buildout. \"Those chips, without optical transceivers literally could just sit there waiting around un-utilized until you actually have the transceivers to essentially connect them together,\" he added.\n\nSome data centers need millions of optical transceivers to connect servers, routers and switches.\n\nThe Federal Communications Commission, which oversees the US telecom industry, is working on the ban.\n\nThe efforts by Microsoft and other firms, which have not been previously reported, show how the agency's deliberations have set off alarms in an industry scrambling to meet surging demand for cloud and AI services despite a growing backlash by consumers over rising energy costs and water use.\n\nMicrosoft declined to comment. The White House, the FCC and the Chinese embassy in Washington did not immediately respond to requests for comment.\n\nUS COMPETITORS LACK SCALE\n\nChina boasts two-thirds of the global market for optical transceivers, according to Counterpoint Research. Chinese firms like Eoptolink and Zhongji Innolight, which was added to the Pentagon's list of Chinese military-backed companies, dominate global supply, counting top American hyperscalers among their customers.", "url": "https://wpnews.pro/news/exclusive-microsoft-presses-trump-to-scuttle-expected-ban-on-chinese-data-center", "canonical_source": "https://ca.finance.yahoo.com/news/exclusive-microsoft-presses-trump-scuttle-110917005.html", "published_at": "2026-11-10 11:09:17+00:00", "updated_at": "2026-11-10 11:50:54.681992+00:00", "lang": "en", "topics": ["ai-infrastructure", "ai-policy", "ai-chips"], "entities": ["Microsoft", "Trump administration", "Federal Communications Commission", "Information Technology Industry Council", "John Miller", "Eoptolink", "Zhongji Innolight", "Counterpoint Research"], "also_reported_by": [{"url": "https://shattered.io/microsoft-presses-trump-chinese-optical-transceiver-ban-3-2-tbps-2026/", "source": "shattered.io", "title": "Microsoft Fights Chinese Optics Ban: 3.2 Tbps [2026]", "published_at": "2026-11-10T11:27:44+00:00"}], "alternates": {"html": "https://wpnews.pro/news/exclusive-microsoft-presses-trump-to-scuttle-expected-ban-on-chinese-data-center", "markdown": "https://wpnews.pro/news/exclusive-microsoft-presses-trump-to-scuttle-expected-ban-on-chinese-data-center.md", "text": "https://wpnews.pro/news/exclusive-microsoft-presses-trump-to-scuttle-expected-ban-on-chinese-data-center.txt", "jsonld": "https://wpnews.pro/news/exclusive-microsoft-presses-trump-to-scuttle-expected-ban-on-chinese-data-center.jsonld"}}