HONG KONG -- The rise of artificial intelligence is fueling massive demand for data centers in Asia, but multinational companies face a dilemma when it comes to settling on locations for them. From an economic point of view, it makes sense to build a consolidated facility in one country that can serve multiple markets -- but governments in the region are increasingly restricting cross-border data flows.
China and Vietnam in particular have tightened their data regulations in the name of national security. Although China's top internet regulator in September proposed waiving data export security assessments for certain activities that do not involve personal information or "important data," it did not say what qualifies as "important data." This lack of clarity has raised concerns among global businesses about what might happen if they try to transfer data out of the country.
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