Microsoft pressures Trump to drop ban on Chinese technology for data centers

In August, news released by Reuters indicated that the Trump administration intends to ban the US import of new models of Chinese optical transceivers — components that allow data transmission via fiber optic cables within data centers.

The concern is that this equipment could be used by Beijing to steal data, install malicious programs or disrupt the operation of American data centers.

Microsoft has 35 data centers under construction in the US and another 134 planned, according to Cleanview, a market intelligence company that tracks the development of this type of facility.

Microsoft is part of a group of companies and industry associations that argue, together with the Trump administration, that the ban could irreversibly harm the US advantage over China in the race for artificial intelligence, by further delaying the implementation of these centers, according to a Reuters report.

The cloud and software company 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 warn about problems the ban could cause to the supply chain, two sources told the news agency.

The previously undisclosed efforts of Microsoft and other companies show how discussions are trying to meet the growing demand for cloud computing and artificial intelligence services. At the same time, the expansion of data centers faces criticism related to rising energy costs and high water consumption.

Microsoft declined to comment. The White House, the FCC and the Chinese Embassy in Washington did not immediately respond to requests for comment.