China Introducing Strict Controls On AI Data Centres

Uploaded on 2025-06-06 in NEWS-Cybersecurity News, INTELLIGENCE-Hot Spots-China, FREE TO VIEW, BUSINESS-Services-Financial

China has plans to introduce tighter regulatory controls over Artificial Intelligence (AI) Data Centres, which could have significant effects on the crypto-currency market, sending ripples through the technology markets.

Such policies could impact the operational freedom of AI-driven companies and data processing hubs within the country.

Chinese regulators informed major tech companies, including Alibaba, Tencent Holdings, ByteDance, and Baidu, that they would tighten control over the construction and operation of AI Data Centres.

Stricter regulations may restrict access to computational resources needed for blockchain operations, cloud mining, and AI-driven trading platforms. This will be a particular concern for Alibaba Group, which is making very big investments in AI infrastructure.

Given China's important role in global technology supply chains and its influence on AI innovation, this development will have implications for AI-related crypto-currencies and tokens tied to decentralised computing and data storage.

Crypto traders are watching these regulatory developments, as these changes could impact liquidity, transaction speeds, and the expansion of blockchain infrastructure in China. From their perspective, China’s crackdown on AI data centres could create both risks and opportunities in the crypto space, particularly for AI-focused tokens.

China’s tightening control over AI data centres, fist reported in May, led to immediate price declines in AI-related tokens and also contributed to a broader negative sentiment affecting Bitcoin and Ethereum prices.

The initiative is part of China's broader response to growing competition with the US, especially after American export controls restricted sales of advanced chips. The push reflects China's desire to close the gap with US players like OpenAI and manage the impact of ongoing trade tensions.

Image: Ideogram

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