Trump orders US restrictions on China-built data center power equipment

U.S. hypescalers are building multibillion-dollar AI facilities while relying heavily on Chinese firms for critical power components including transformers, switchgear, batteries and optical technology. Washington views this dependency as a strategic vulnerability amidst rising tensions over AI supremacy between the United States and China. President Donald Trump signed an executive order last week declaring a national emergency concerning 'extraordinary foreign threat' to U.S. infrastructure. This order grants the Energy Department authority to prohibit or impose conditions on transactions involving specific components used in power grids and data centers. Analysts note that scrutiny of China's role has intensified over the past eight months, shifting focus from only the compute stack to include the power stack. The move aims to reduce reliance on foreign entities for essential hardware as American technology giants race to expand AI infrastructure globally.