The Trump administration is drafting a ban on U.S. imports of new models of Chinese-made data-center components, according to four people familiar with the matter cited by Reuters — a move that would extend Washington's technology controls beyond advanced chips and into the physical infrastructure that powers AI.

The Federal Communications Commission is developing the measure, which officials want published this year and effective immediately, the sources said. They cited risks including data theft, malware and remote service access. The proposal is still taking shape and its final scope could change.

The significance goes beyond processors. Data centers depend on networking equipment, optical modules, cooling systems, power-management hardware, batteries and thousands of lower-profile components — areas where Chinese suppliers remain deeply embedded. Restricting them could push U.S. cloud providers and AI startups toward domestic or allied suppliers, potentially raising costs at a moment when infrastructure spending is already soaring.

The news rattled markets: Chinese optical module makers and AI hardware stocks slumped after the report, and Beijing said it would respond if necessary. The move signals that the U.S.-China technology conflict is moving downstream — from chip design tools and fabrication to the machinery that keeps enormous computing clusters running.

Sources