President Donald Trump is all dealing with artificial intelligence and data centers that are powered by him – but his tariffs are threatening to accumulate new costs on US companies that spend hundreds of billions to build them.

Data centers flourishing at any measure, as technological giants fromMicrosoft Corp.toAmazon.com Inc.Race each other – and China – to lead AI. The industry now contributes to a healthy piece of American economic growth. However, centers must be equipped after they have been built, and much of the hardware comes from abroad, so that the trade wars could throw the key into the works.

Trump has already imposed a duty of 20% and moved forward and back over 25% of Mexico billing – two largest sources of import of US computer equipment. Steel and aluminum are also affected. Many More tariffs are in the production, and probably goals include countries that supply the data industry-loud in Asia-as well as some of the key components to which it relies, such as the semiconductor.

An additional expense may not distract companies with deep pockets that persecute AI breakthrough that is probably the biggest technological development of the era. Yet after discovering Chinese Deepseek models – whichwrinklyFinancial markets with a lower route proposal-this is another wind for the industry. Projects could be more expensive or confronted with retaining if escalating a trade war ending with the disturbance of the supply chain.

“We believe that the wider application of tariffs globally could be a significant risk of lack of a US data center, given its reliance on the global supply chain for materials and components purchased in large quantities,” said Niccolo Lombatti, analyst for digital infrastructure in BMI.

Trump is advocating for the development of American data centers and AI technology since the beginning of his second term. One of his first major announcements wasinvestmentof as many as $ 500 billion in AI infrastructure SoftBank Group Corp., Openi and Prophet Corp.

The flourishing has been ongoing by then, adding as much as 0.3% growth GDP last year, or approximately $ 100 billion, according to Jpmorgan chase & Co. Analysts who predict numbers will be in a similar playground this year.

It is in the last few months of the company, including Alphabet Inc. Google and Meta platform Inch. They announced new projects worth hundreds of billions of dollars. Assuming that everything that is ongoing goes forward as planned, and the consumption spreads evenly during the construction period, the investment will increase as much as 64% this year and another 14% in 2026. Before it reached $ 135 billion in 2027, according to Bloomberg’s intelligence analysis.

Electric shock

But industry chiefs are concerned about Trump’s tariffs, and analysts cause concern about the exceeding budgets and delayed time deadlines. It is difficult to determine exactly what share of data equipment in the center comes outside the US. Even the parts and materials that are purchased in the country were able to see the price increase, which was obvious during Trump’s first trade war.

Trump’s administration believes that his plans will be chewed in energy prices by reducing bureaucracy, and encouraging production will help offset the company tariff costs for the company, something that is key to the data center industry, where power is the main cost, said the White House official.

Electricity manufacturers, which consider the data centers with the main power centers, also see no sign of return. Two of the greatest, Duke Corp. and American electricity,,saidLast month, they see the demand of the industry that acts “full speed”.

The tariff impact on data centers electrical equipment is likely to be significant, he saidBen BoucherOlder analyst for supply chain data and analytics at Wood Mackenzie.

It calculates that more expensive imports and domestic production as a result of Trump’s trade measures so far would mean increasing prices of about 8-9% for power transformers, 6-7% for Switchgear, 3-4% for switches and 6-7% for wires and cables.

The dependence of the industry on foreign suppliers of equipment fits with a wider pattern that is seen that the US is becoming more dependent on different types of imported machines.

This is an obstacle to Trump’s trade war aim of the revival of the domestic industry, at the same time narrowing the trade gap, because when US companies are trying to expand their capacity at home, they often have to buy machines they need from abroad.

‘Continue no matter’

In the meantime, US companies selling equipment used in data centers abroad are also at risk of returning Trump’s policies. Their products could be tariffed by other countries, and they also seek clarity on which limitations could be placed on their export of advanced technology if Trump expandsedgeHe was imposed by his predecessor Joe Biden.

For now, a little signs are that investment in infrastructure is crucial for AI losing momentum.

“Beyond The cost of pressure, the demand for new data centers is so high that the vast majority of projects will continue regardless of policy changes, “said Michael Bellaman, president and executive director of associated builders and performers.

American technological leaders have a lot of money for capital consumption. After the surprise of the appearance of Deepseek, whose cheap open code model asked questions about existing data consumption plans and AI consumption, they emerged. Microsoft,, AmazonGoogle and Meta-four of the so-called Magnificent Seven-Intestly Increased Capital Consumption by about 32% compared to last year’s level, according to last year Bank of America.

“This confirms that the AI ​​Capex cycle is intact – there is no deep influence yet,” Ohsung Kwon and Savita Subramanian wrote in February.

However, with a trade war that spread throughout the American economy and financial markets, even the warmest industry is unlikely to completely escape the outburst.

“Tariffs are import taxes, and imports of imports increase prices,” said Patrick Lozada, director of global policy at the Telecommunication Industry Association. “It will be true in data centers, just as it will be true for consumer products or for anything else.”

This story is originally shown on Fortune.com

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