TikTok parent ByteDance to build new data center in China
The new facility is expected to support the development of ByteDance’s own AI models, including its ChatGPT-like service, Doubao.
As TikTok plans a complete shutdown in the US, its parent company ByteDance is not slowing down on investing in more infrastructure. After numerous efforts to reverse the ban, the Chinese technology company is now prepared to deal with its potential absence in the US.
However, the ban is not slowing down the company’s innovations plans. South China Morning Post (SCMP) reported that ByteDance will be investing US$614 million to develop a new AI data center in China. The data center, which is expected to build in the Shanxi province, will focus on providing compute capacity to support the Chinese technology company’s ChatGPT-like service Doubao.
According to the report, Volcano Cloud Technology, a ByteDance controlled company, has received approval from the Shanxi government to build the 2.2 million square foot data campus as the Economic Development Zone Big Data Park in eastern Datong. The campus will be a two-story data center complex with another six-story integrated facility included as well.
SCMP also reported that the first phase of the construction had already begun in May 2023 and is nearing completion. Apart from the new facility in China, ByteDance also has data centers in Malaysia and Singapore. Last year, the company announced that it will be investing another US$ 2.13 billion to develop an AI data center hub in Johor, Malaysia.
The TikTok owner has also spent over US$2 billion on NVIDIA chips in 2024. Despite the US government imposing new restrictions on the sales of chips of American companies to China, ByteDance reportedly is aiming to spend up to US$ 7 billion in on NVIDIA’s chips this year.
The H20 GPUs by NVIDIA are used to develop AI models. This includes supporting the capability of the Doubao chatbot app. Interestingly, ByteDance has also stated that these chips will not be used in China but will be stored across its data centers in Southeast Asia.
The latest data center investment by ByteDance in China will most likely only see the US increase its concerns on the app. The current ban on TikTok will be on the 19th of January, 2025.
Interestingly, there have been reports that TikTok’s CEO, Chew Shou Zi, will be attending Donald Trump’s inauguration. The Singaporean CEO help a private meeting with the next President of the US last month.