China Tightens Control Over AI Data Centers

Chinese officials in the past two months told some of the country’s top technology companies that the government will take a more active role in overseeing their data centers for artificial intelligence and the specialized chips for developing the technology, according to two people involved in the conversations.

The Chinese government wants companies to build new data centers in specific locations that give authorities greater visibility into their operations, these people said. Otherwise, it will take more time granting licenses, officials told the companies. That could mean China’s biggest AI data center developers, including Tencent Holdings, Alibaba Group, ByteDance and Baidu, could face delays in building new facilities, according to people close to these companies.