Microsoft presses Trump administration to drop expected ban on Chinese optical transceivers for AI data centers

Microsoft has been lobbying the Trump administration to halt an expected FCC ban on imports of new Chinese optical transceivers, the components that link AI chips, servers and switches over fiber inside data centers, Reuters reported, citing three people familiar with the matter. Microsoft, which has 35 US data centers under construction and 134 more planned, was among a handful of firms that met White House science and National Security Council officials in September to flag supply-chain risks. Industry group ITI warned a ban could grind the data center buildout to a halt, since Chinese makers hold about two-thirds of the global transceiver market. Two sources said the FCC is weighing a narrower cutoff targeting 3.2-terabit-per-second transceivers, which aren't expected to ramp until 2028. Microsoft declined to comment.