Lobbyists for Microsoft and other data center companies are reportedly attempting to prevent a U.S. import ban on new models of optical transceivers from the People’s Republic of China. The country dominates the global market for such devices, which enable data transfers with terabit bandwidth within data centers. The theoretically independent regulatory body FCC (Federal Communications Commission) is reportedly preparing the import ban at the request of U.S. President Donald Trump.
Washington apparently fears that Chinese actors could manipulate new transceiver models to smuggle in malware or otherwise sabotage U.S. data centers. Why this risk applies only to new types and not to types already established on the market remains unclear.
The looming import ban affects U.S. data center companies. As Reuters reported, citing three insiders, several industry associations and companies, including Microsoft, are lobbying against it in Washington, D.C. Their main argument: The restriction would slow the construction of new data centers in the United States, potentially setting the country back in the AI race with China. Beijing apparently sees things differently and has also spoken out against the trade restriction: Washington would be overplaying the “national security” argument.
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Although optical transceivers are also available from U.S. suppliers, their production capacity cannot meet demand.Microsoft alone is said to have around 170 new data centers under construction or in preparation in the USA. The company has not commented on the efforts to fight the import ban.
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