American AI data‑center construction is increasingly dependent on Chinese‑made power and networking components, with Chinese suppliers accounting for roughly two‑thirds of global optical transceiver unit supply.
The shift has helped prompt executive action in Washington after President Trump declared a national emergency and authorised the Energy Department to prohibit or condition transactions involving certain bulk‑power and data‑center equipment.
Little scrutiny
“Scrutiny over China’s presence in the US data centre power stack has only risen over the past eight months or so,” said Laveena Iyer, senior analyst at The Economist Group.
Analysts warn the exposure centres on grid connectors and backup systems, China’s share of some transformer and switchgear categories runs near 30% and it accounts for over 40% of US battery imports, and they say Western suppliers may struggle to replace that manufacturing capacity quickly, risking higher costs and supply shortages.
Hyper-growth
S&P Global projects American data‑center capacity will grow from 62 GW in March 2026 to 152 GW by 2030, a scale that underpins regulators’ push to shift sourcing and spur domestic grid‑equipment investment.
