Driven by escalating geopolitical tensions between the U.S. and China, the world’s leading cloud and technology providers—Microsoft, Amazon, and Google—are actively accelerating plans to shift their manufacturing and data center supply chains away from China, according to a Nikkei report citing supply chain sources.

Microsoft is reportedly spearheading this shift with an ambitious goal: to source up to 80% of the components for its Surface laptops and tablets, as well as for its data centers, from outside China by 2026. The scale of this transition is described as “substantial,” encompassing a wide range of parts and final assemblies for future servers and computers. The company has allegedly asked its manufacturing partners to establish production capacity outside of China starting next year and is also exploring moving some of its Xbox console manufacturing to other parts of Asia.

Similarly, Amazon Web Services (AWS) is evaluating a reduction in its orders for AI data center printed circuit boards (PCBs) from its long-standing supplier. Meanwhile, Google is pushing its supply chain partners to significantly ramp up server production capacity in Thailand, a country where it has already secured multiple partners for components and final assembly.

However, the report notes that such a rapid decoupling from China’s manufacturing ecosystem presents significant challenges. The move is complicated by the vast range of sophisticated components involved and the advanced technological capabilities of Chinese partners.

This strategic supply chain realignment occurs against a backdrop of retaliatory measures from both nations, which have included successive rounds of tariffs, tightened export controls on critical components and resources, and restrictions on the sale of sensitive technologies.

Requests for comment from Microsoft, Google, and Amazon were not immediately returned.