Trade War Impact Report

Tariff Analysis: Trade War Adds Billions of Dollars to AI Data Center Construction Costs

altana ai data center build analysis

Key takeaways

Altana's analysis of the world's most comprehensive body of supply chain data finds that 2025 tariffs are adding billions of dollars to U.S. AI data center construction costs. U.S. importers face a projected $13.6 billion in additional annual tariff exposure on the finished components that go into these builds.

  • U.S. importers face a projected $13.6 billion in additional annual tariff exposure on finished physical components used to build AI data centers, according to Altana's multi-tier analysis.
  • U.S. businesses imported $31.8 billion worth of finished physical components for AI data center construction in 2024, from cooled server racks to fiber optic cables and networking gear.
  • China supplies $7.7 billion of U.S. imports of AI data center parts — more than Vietnam ($4.5 billion) and Taiwan ($2.7 billion) — and 2025 tariffs on those Chinese parts are projected to exceed the total 2024 import value.
  • Altana's analysis found that automatic computing software, such as data processing machines, carries a 114% tariff rate that adds $3.9 billion in levies on top of $3.4 billion of 2024 imports — more than doubling import costs.

Major U.S. enterprises face billions in tariff exposure for AI data center components; modeling and managing exposure requires value chain visibility, traceability, and collaboration

Amid a boom in enterprise AI use, the corresponding need for huge amounts of computing power, and ongoing trade fragmentation, the building of AI data centers is testing corporate supply chains — and budgets.
An analysis by Altana of the world’s most comprehensive body of supply chain data reveals that tariffs are adding billions of dollars to AI data center construction costs for U.S. enterprises. In 2024, there was $31.8 billion worth of U.S. imports of finished physical components that went into the construction of AI data centers.
Based on 2025’s tariff rates, and Altana’s multi-tier analysis of country of origin, U.S. importers are projected to incur $13.6 billion worth of additional tariff exposure annually.
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The analysis indicates that some components vital to AI data center builds, such as AC power supply, fiber optic cables, automatic computing, and more, are responsible for a disproportionate volume of the total tariff exposure. The analysis also found that the 145% tariff rate on China’s imports is skyrocketing the costs of AI data center builds, pointing to the necessity of product value chain visibility, traceability, and collaboration to mitigate exposure and maintain profitability.

Enterprises Face Different Tariff Rates, Substantial Costs on Different Physical Components

American enterprise businesses rely on different physical components to contract the building of AI data centers. Altana’s analysis found that tariff exposure varies widely from component to component based on product and country of origin, with levies on some AI data center parts slated to more than double import costs in 2025.
tariff exposure, AI center components
For example, $5.5 billion worth of electric static converters, commonly used to keep AI data centers cool, were imported for AI data center builds in 2024. Based on Altana’s analysis, the new, annualized tariff rate on that component is 35%, adding up to $1.9 billion of additional importer costs.
For wires and electric parts such as fiber optic cables, there will be $1.1 billion of additional levies on top of the $2.5 billion of 2024 imports. For automatic computing software such as data processing machines, tariffs will more than double the costs of imports, with a tariff rate of 114% imposing $3.9 billion of additional levies on the $3.4 billion of last year’s import value.

2025 Tariffs on AI Data Center Components From China Projected to Eclipse Entire Import Value in 2024

Huge tariffs on China amid the U.S.-China trade war creates significant tariff exposure for American enterprises building AI data centers, with the projected levies on China to U.S. AI data parts in 2025 exceeding the total import value of 2024 shipments.
china tariff imposes levies u.s. enterprises
Unfavorable tariffs rates on China are layered on top of a relatively large volume of imports of Chinese parts destined for AI data centers. $7.7 billion of imports of parts bound for AI data centers come from China to the U.S., compared to $4.5 billion from Vietnam and $2.7 billion from Taiwan.
The large tariff rate on automatic computing and software, compared to other components, indicates significant exposure for U.S. businesses on China’s computing manufacturing supply chain, which is the largest in the world. China’s dominance in this type of manufacturing leaves certain U.S. businesses exposed to huge AI data center building costs: One major U.S. enterprise has a projected $1.96 billion in additional yearly tariff exposure; dozens of others have $100 million to $1 billion in annual exposure.

High-Tech Physical Components Vital to AI Data Center Construction Hugely Dependent on China

Just as the total dollar value of tariff exposure on AI data center components varies from part to part, imports of certain components have especially high China components.
High-tech components, like computers, computer parts, and electric cables, all require critical minerals and advanced electrical manufacturing for production. China's developed advanced manufacturing capacity, and ample sources of critical minerals and metals such lithium and copper, result in considerable dependence for these electric and computing components
most china-dependent AI data center construction components
Other components have reduced China dependence. Insulated building cables that don't plug into electricity, for example, are 96% free of Chinese dependence. More dated computer technology, such as magnetic disk drives, flash drives, and floppy disks, are 97% free of Chinese dependence.

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The dynamic, fluid global trade landscape –– including tariffs and the U.S.-China trade war –– demands immediate attention and action to mitigate disruption to your supply chain and bottom line. Altana’s Tariff Scenario Planner helps you navigate trade volatility with precision and speed — powered by the most comprehensive view of your product-level, multi-tier value chains.
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With our Tariff Scenario Planner, you can:
  • Pinpoint exposure: See the precise share of your product costs impacted by the new tariffs, down to the shipment level.
  • Simulate mitigating actions: Identify which suppliers pose the highest cost risk and test different trade flows across multi-tier product value chains so you can execute the right diversification strategy.
  • Find alternative sources faster: Search for qualified suppliers outside of affected trade lanes to reduce risk and maintain supply continuity.

About the Analysis

Altana’s analysis covered the value of direct imports of inputs and components that were traced to the building of data centers in the U.S. in 2024. The analysis doesn't include imports of raw commodities like steel or aluminum; instead, imports of finished physical components, including cooled server racks, data center-level fiber optic cables, networking gear, and more, were included.

FAQs

  • Tariffs are projected to add $13.6 billion in additional annual tariff exposure for U.S. importers of finished AI data center components, based on Altana's analysis of 2025 tariff rates. In 2024, U.S. businesses imported $31.8 billion worth of finished physical components for these builds. The figures cover finished goods like cooled server racks, fiber optic cables, and networking gear, not raw commodities such as steel or aluminum.

  • China supplies $7.7 billion of U.S. imports of AI data center parts, more than any other country, and the 145% tariff rate on Chinese imports drives up build costs sharply. China also has the world's largest computing manufacturing supply chain, so the high tariff on automatic computing and software hits U.S. businesses especially hard. Projected 2025 tariffs on Chinese AI data center parts are expected to exceed the total value of those imports in 2024.

  • Automatic computing software, such as data processing machines, faces a 114% tariff rate that adds $3.9 billion in levies on top of $3.4 billion of 2024 imports. Electric static converters, used to keep data centers cool, carry a 35% rate adding $1.9 billion in importer costs. Wires and electric parts like fiber optic cables add $1.1 billion in levies on $2.5 billion of 2024 imports.

  • Altana's analysis found that one major U.S. enterprise has a projected $1.96 billion in additional yearly tariff exposure for AI data center components. Dozens of other companies face between $100 million and $1 billion in annual exposure. Much of this concentration traces back to China's dominance in computing manufacturing.

  • No. While high-tech components like computers, computer parts, and electric cables are heavily dependent on China's advanced manufacturing and critical minerals such as lithium and copper, other parts are not. Insulated building cables that don't plug into electricity are 96% free of Chinese dependence, and older technology like magnetic disk drives, flash drives, and floppy disks are 97% free of it.