China’s Control Over Data Centers Threatens U.S. AI Security
U.S. faces risks from China’s dominance in optical transceivers for data centers. FCC and Congress push for bans to protect AI infrastructure.
2 min read
America is investing hundreds of billions of dollars to build data centers as part of its push to lead in artificial intelligence development. While much debate surrounds who should manufacture the chips, fewer are questioning the components that connect these chips to the outside world. This oversight is a critical mistake, as many of these components are made in China.
Optical Transceivers: The Hidden Threat
Optical transceivers are essential for high-speed data transfer between servers, racks, and facilities. Nearly every major AI cluster in the U.S. relies on them. China is the main supplier, with approximately two-thirds of global optical transceivers coming from there. Companies like Innolight and Eoptolink are leading suppliers, despite being listed on the Department of Defense’s Chinese Military Companies list.
China’s strategy of using state funds and industrial policy to dominate critical technologies has been seen in industries like solar panels and batteries. This has led to past failures, such as the need for $5 billion to replace Huawei and ZTE equipment in rural carriers. If the U.S. fails to act now, the stakes could be even higher.
Washington’s Response and Industry Pushback
Washington is taking action, with the Federal Communications Commission (FCC) poised to ban Chinese optical transceivers to protect AI infrastructure. Chairman Brendan Carr and his team are seen as taking national security seriously. A bipartisan Senate bill also aims to keep Chinese transceivers out of sensitive national security systems.
However, these efforts face pushback from major tech companies and associations. While some companies have warned of the need for a secure digital ecosystem, they have also lobbied against proposed actions. The argument is clear: if security is a priority, then the physical infrastructure of data centers must also be considered.
The Path Forward
An AI model is only as secure as the hardware it runs on. Using components supplied by companies under the Chinese government poses a risk to the trustworthiness of AI systems. Big Tech must recognize that the physical infrastructure in data centers is a key part of security.
Theodore Roosevelt’s understanding that a nation cannot govern itself without securing its industrial base is relevant today. The AI race will be won or lost on infrastructure, and optical transceivers are as crucial as chips. To keep America safe, the FCC should finalize its ban, Congress should pass the bill, and tech companies should stop lobbying for Chinese hardware.
We already paid once to remove Huawei. We shouldn’t have to do it again.
Source: Breitbart
