The Global Data Center Boom Is a Gift to Spies (www.lawfaremedia.org)

In 2024, U.S. officials shut down a Chinese-owned data facility near a nuclear missile base in Wyoming due to surveillance fears. However, as global demand for data centers skyrockets, a significant threat emerges from colocation practices, where competing firms share physical space. This arrangement poses risks as adversaries can easily plant surveillance devices or manipulate hardware without complex hacking. With colocation accounting for over 90% of public data centers and crucial AI model weights being stored in these environments, the implications for national security and data integrity are profound. The rapid global expansion of data centers, particularly by Chinese firms like Alibaba and Tencent, heightens these concerns, as American companies are often positioned just inches away from potential adversaries. While the U.S. has tools to address these risks, such as the Committee on Foreign Investment, regulatory attention has waned, particularly with policies to limit foreign access to sensitive data centers being shelved. Given that many advanced AI deployments occur in regions outside U.S. oversight, companies must prioritize secure data center choices to protect against espionage. As geopolitical tensions rise, understanding who shares access to critical computing infrastructure has never been more vital for maintaining competitive advantages in AI development.