US hyperscalers race to build multibillion-dollar AI data centers, but China controls critical parts
· Source: cryptobriefing.com
In short
American tech giants Microsoft, Amazon, Alphabet, and Meta have committed over $650 billion in capital expenditure for data center expansion in 2026, yet they remain heavily dependent on Chinese manufacturers for critical electrical infrastructure components. Chinese firms supply roughly 30% of US transformers and switchgear, over 40% of batteries used in data center operations, and about two-thirds of global optical transceiver units. A potential US ban on Chinese optical transceiver imports, targeted for late 2026, could significantly escalate costs and disrupt AI infrastructure builds, creating a vulnerable transition window between cutting off Chinese supply and scaling domestic production.
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In the issue of week 36, 2026: AI-Driven Automation and Integration Reshape Supply Chain Efficiency and Security
Tags: data centers, supply chain, China, AI infrastructure, components, hyperscalers