ByteDance to Invest $500M on Building New Data Center in Ireland Amid TikTok Ban in the US

After President Trump threatened to ban TikTok in the United States, Bytedance will be investing $500 million on opening its first data center in Europe. The center will store videos, messages, account information, and other data created by European TikTok users.

While the details of the project are not yet announced, Bytedance aims the center to be operational within two years as it would create hundreds of new job opportunities, according to Daily Express.

Currently, TikTok user information is stored in the U.S. while a back-up copy is held in Singapore. The new data center will then host information of European users as the company hopes this move will give its users confidence about the security of their data and their privacy are highly protected.

A 3-D printed figures are seen in front of displayed Tik Tok logo in this picture illustration
A 3-D printed figures are seen in front of displayed Tik Tok logo in this picture illustration taken November 7, 2019. Picture taken November 7, 2019. REUTERS/Dado Ruvic/Illustration/

TikTok said they are already working on the new Irish data center even before President Trump hinted about banning the app in the U.S.

"It's a significant investment," TikTok Public Policy for Europe director Theo Bertram told the BBC, adding that the construction is a symbol of the company's long-term commitment to Europe. "I think that's an important message for our users and our creators at this time," he said.

Currently, the country's Data Protection Commission has already dealt with privacy issues on the app, and it has been easier since TikTok's chief data protection officer for Europe is already based in Dublin.

Meanwhile, Irish center creation will be built at an undisclosed location and will operate after about 18 to 24 months without any impact on the European users.

Earlier, reports that TikTok will open a new international headquarters in London surface, which the British government said it would not block the project.

TikTok's U.S. fate

The announcement of a new data center in Europe comes as President Trump accused the Chinese app as a national risk since its parent company Bytedance is based in Beijing, China. Bytedance denies the charge and has continuously worked its way to appease the U.S. government. Despite the company's efforts, Trump has recently given a 45-day deadline on Microsoft's acquisition of TikTok's U.S. operations or the Chinese app will be banned.

In a corporate statement, Bytedance Chief Executive Officer Zhang Yiming said they have not yet concluded a final resolution if they would push through with the Microsoft deal. He also aired his disagreement with the U.S. Committee on Foreign Investment's proposal to release the app's U.S. business. Yiming claimed that they have continuously protected its users' data security as well as TikTok's independence and transparency.

A person walks past a Microsoft logo at the Microsoft office in Beijing
A person walks past a Microsoft logo at the Microsoft office in Beijing, China August 4, 2020. REUTERS/Thomas Peter

In the same statement, Yiming said they are now meeting with a tech firm, although he did not confirm if it was Microsoft.

A Tech Times report, Microsoft confirmed on Aug. 2 that it will continue its discussions with Bytedance regarding its plan to acquire the short-video app. The statement comes after President Trump announced that he would ban the app as soon as August 1.

Trump said that it will ban the app unless an American company amid acquired TikTok's U.S. operations. The president is concerned that the Chinese government could access user information. Trump's announcement came two days after he threatened to immediately ban the app.

However, Bytedance has always denied it received any request from the Chinese government or that it would accept such a request when the time happens.

This article is owned by Tech Times

Written by CJ Robles

ⓒ 2024 TECHTIMES.com All rights reserved. Do not reproduce without permission.
Join the Discussion
Real Time Analytics