Trump Tariffs Likely Increase AI Data Center Costs

President Donald Trump's recent imposition of steep tariffs on imported technology equipment could significantly impact the U.S. artificial intelligence sector and data center construction. While semiconductors are exempted from these tariffs, the new duties ranging from 10% to 34% on other tech imports may increase operational costs for companies like Intel and Microsoft, potentially delaying their AI infrastructure projects. Analysts suggest that firms will likely adjust their capital expenditures, shifting focus from expansion to sourcing strategies. The tariffs could particularly affect equipment necessary for building data centers, raising costs and creating uncertainty within the supply chain. This situation is exacerbated by the need for American chipmakers to rely on foreign fabrication equipment, which will now incur higher import taxes. As a result, big tech stocks suffered a notable decline following the announcement, indicating investor concerns about future growth prospects in the AI space.