FCC Plan on New Chinese Optical-Transceiver Models Could Slow AI Buildout

John Miller, the Information Technology Industry Council’s executive vice president for policy and general counsel, warned that proposed import limits on new Chinese optical-transceiver models could delay U.S. AI data-center construction.

The Federal Communications Commission is developing the measure, but it has not announced its scope or timing. The proposal concerns new models, but it remains unclear which specific models would be covered.

Optical transceivers send data over fiber between servers, routers and switches. Those connections link equipment in AI computing clusters, and some large data centers need millions of the devices.

Miller said cloud companies have already bought AI chips, but the processors need transceivers to connect and operate as a cluster. He warned that restrictions could leave chips idle and stall construction.

Cloud and AI companies are expanding to meet rising demand while facing public concerns about electricity costs and water use. The FCC measure remains under development, with no announced timetable.