Trump signs order to curb Chinese gear in AI data center power systems
The Trump administration issued an emergency order to restrict Chinese-made equipment used in U.S. data center power grids, citing heightened national security risks.
President Donald Trump signed an executive order this week designating foreign-made bulk-power equipment as an extraordinary threat, granting the Energy Department power to limit or condition related transactions. The order focuses on Chinese-origin components critical to data center electricity, including transformers, switchgear, batteries and optical transceivers that support AI workloads. Analysts highlight that China provides about 30% of U.S. transformer and switchgear imports and more than 40% of battery imports, with additional upstream reliance on copper, electrical steel and cathode materials.
Companies such as Hitachi Energy and Siemens Energy have announced billion-dollar investments to expand domestic production of grid equipment. Restrictions could benefit U.S. firms like Lumentum and Coherent, which stand to gain market share if Chinese competitors are curtailed.
Why it matters
Limiting Chinese power-grid parts reduces U.S. vulnerability to supply disruptions that could cripple AI data centers and critical infrastructure.
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