Tariffs to Increase Costs for AI Data Centers

Tariffs on imports from China are expected to add billions to the cost of building AI data centers in the U.S., according to Altana's analysis.

Altana has reported that tariffs on imports from China are expected to significantly increase the cost of building AI data centers in the U.S. Altana's analysis indicates that U.S. importers could face $13.6 billion in additional tariff exposure annually, with $11.2 billion attributed to the 145% tariffs on Chinese imports.

The increased costs will primarily affect components essential for AI data centers, such as air conditioning supplies, fiber optic cables, and automatic computing equipment. For instance, the cost of electric static converters, crucial for cooling AI data centers, is projected to rise from $5.5 billion in 2024 to $7.4 billion in 2025. Additionally, fiber optic cables and other electric parts will incur an extra $1.1 billion, while automatic computing software will see $3.9 billion in tariff charges.

These tariffs come amid ongoing trade negotiations between the U.S. and China, with potential changes in tariff levels depending on the outcome of these discussions. Treasury Secretary Scott Bessent has announced that high-level trade talks with China are set to begin soon in Switzerland.

We hope you enjoyed this article.

Consider subscribing to one of several newsletters we publish like Silicon Brief.

Also, consider following us on social media:

Subscribe to Daily AI Brief

Daily report covering major AI developments and industry news, with both top stories and complete market updates

Whitepaper

Stanford HAI’s 2025 AI Index Reveals Record Growth in AI Capabilities, Investment, and Regulation

The 2025 AI Index by Stanford HAI provides a comprehensive overview of the global state of artificial intelligence, highlighting significant advancements in AI capabilities, investment, and regulation. The report details improvements in AI performance, increased adoption in various sectors, and the growing global optimism towards AI, despite ongoing challenges in reasoning and trust. It serves as a critical resource for policymakers, researchers, and industry leaders to understand AI's rapid evolution and its implications.

Read more