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Minister: TikTok data centre could anger the United States

A government minister suggests that a planned data centre may be a way for China to bypass curbs on AI chip exports.

Wille Rydman speaking on TV.
Economic Affairs Minister Wille Rydman (Finns).
  • Yle News

Controversy continues to swirl around a TikTok-linked data centre project in Kouvola.

Finnish Economic Affairs Minister Wille Rydman (Finns) has raised concerns that a planned TikTok data centre in Kouvola has the potential to strain Finland's relations with the US.

The data centre, to be built by real estate investment company Hyperco, would be used primarily by TikTok, the Chinese social media giant. While public debate has largely focused on data security risks, Rydman emphasised the potential misuse of the facility to gain access to high-performance chips used in AI development.

Speaking to Yle TV's A-studio programme on Monday evening, the minister suggested the possibility of China using the centre to bypass US export restrictions on cutting-edge semiconductors. US President Donald Trump has sought to limit China's access to advanced chips, including those produced by US tech giant Nvidia.

Rydman pointed to similar tactics allegedly employed in Malaysia and questioned whether TikTok's motives in Finland might go beyond data storage needs.

"There's a legitimate concern about whether this is the real reason TikTok wants to rent a data centre in Finland," Rydman told Yle, adding that Finland's potential upside in the deal was "quite limited".

Tech law expert Toni SelkäIä, however, cast doubt on the claim that a TikTok data centre in Finland could pose a serious threat to Finland's US relations due to microchip concerns.

The Turku University researcher noted that Ireland, for example, has hosted a TikTok data centre. The Dublin facility started storing the social media giant's data of European users in the autumn of 2023, according to UK paper the Guardian.