Despite semiconductor exemption, Trump tariffs could chill US data center investment: analysts

With significant reshoring likely years away, higher prices for imported servers, cooling equipment and power systems could raise development costs in the short term, industry experts say.

Dive Brief:

• Despite an exemption for semiconductor imports, Trump administration tariffs will likely raise data center development costs and could chill investment in the sector, with proposed and under-construction facilities affected more than operating data centers, analysts say.
  
  
• “Any data center buildout where the product is not made in the U.S. is going to be affected,” even as durable inventory stockpiles and long development lead times blunt the financial impact in the near term, said Ashish Nadkarni, group vice president and general manager for worldwide infrastructure research at IDC.
  
  
• The tariffs are also likely to raise prices and worsen supply chain constraints for critical power infrastructure, potentially delaying development and pushing data centers toward more flexible power management solutions, said Tyler Norris, Ph.D candidate at Duke University and co-author of a February report on data center load flexibility.

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RSK: I think there will be a wait and see for a bit until the tariff fiasco works itself out. Others that are already under construction or near finishing will be completed...