TikTok parent company ByteDance has announced its plans to open a data center in India. The company projects an investment of $1 billion in the country over the next 3 years.
Known as a popular video sharing App, TikTok has an approximate 200 million audience in India. The company however, is currently faced with data sovereignty concerns raised by India’s technology ministry, and may be banned from the country if these data privacy concerns are not addressed.
“Since the launch of our platforms in India, we have stored the data of our Indian users at industry-leading third-party data centers in the US and Singapore,”
ByteDance said in a statement.
“We now believe that the time has come to take the next big leap. We are now in the process of examining options for safe, secure and reliable services for our Indian users within India’s borders.”
India’s technology ministry dropped another ban threat last week, giving ByteDance until Monday to respond to 24 questions about “anti-national” and “anti-social” content, as well as data privacy and the protection of children.
This is coming after TikTok and another of the company’s apps, Helo, were accused of allowing young children to be potentially exposed to pornography and other inappropriate content. To this end, a court in India banned TikTok in April – although reversed the decision after appeal about a week later.
ByteDance, a Chinese company valued at $75 billion, is the world most valuable startup and is putting all in place to stay on top of India’s tech market
“Our continued success in India will not be possible without the support of our local community,”
ByteDance in a statement to CNN Business
“We take our responsibilities to this community seriously and welcome this opportunity to fully collaborate with the government to meet and exceed our obligations.”
India’s “Business Standard”, which first broke the news, reports that the company has set an internal target of 6 to 18 months to build the data center and launch its operation in India.