Microsoft Reportedly Urges Trump Admin Not To Ban Chinese Data Center Parts

Microsoft has pressed the Trump administration not to ban Chinese-made parts used in artificial intelligence data centers, Reuters reported Tuesday.

The company is among several firms and trade groups arguing that a ban could slow the data center buildout and hurt America’s lead over China in AI, the outlet reported, citing three people familiar with the situation.

“Any announcements will come directly from the Administration,” an administration official said in a statement to the Daily Caller News Foundation. “Until then, any discussion or reporting about additions to the covered list should be regarded as baseless speculation.”

The Federal Communications Commission (FCC) publishes the Covered List, which names communications equipment and services “deemed to pose an unacceptable risk to the national security of the United States or the security and safety of United States persons.”

The agency is working on the ban, according to Reuters.

The ban would cover new models of Chinese optical transceivers, which send data over fiber-optic cables inside data centers. The concern is that Beijing could use the parts to steal data or disrupt service, according to Reuters.

Microsoft was one of a handful of companies that met in September with officials from the White House Office of Science and Technology Policy and the National Security Council to raise supply chain concerns, according to the outlet. Microsoft declined to comment to both Reuters and the DCNF.

The FCC did not respond to the DCNF’s request for comment.

Cleanview, a firm that follows data center projects, counts 35 Microsoft data centers being built in the U.S. and another 134 on the drawing board, according to Reuters.