According to DCD, TikTok’s parent company ByteDance is facing regulatory hurdles in its bid to build a data center in Australia. The company has reportedly been considering a facility since 2024 and wants to construct a 100MW campus in either New South Wales or Victoria. However, it has yet to gain the necessary approval from Australia’s Foreign Investment Review Board (FIRB), which must sign off on any project where foreign ownership exceeds 10 percent. The Australian Financial Review reports that lobbying firm Anacta Strategies is working on TikTok’s behalf to secure permission. This delay comes as TikTok simultaneously faces a potential nationwide ban in the United States by January 2026 unless it sells its U.S. operations.
Australia’s Tough Stance
Here’s the thing: Australia’s FIRB isn’t known for being a rubber-stamp committee, especially when it comes to critical infrastructure and Chinese-linked investment. The board has become increasingly cautious. So, TikTok hitting this wall isn’t a huge surprise in the current geopolitical climate. It’s a classic case of data sovereignty concerns clashing with a tech giant’s expansion plans. The company has been on a global campaign to localize data storage, building centers in Ireland and Norway to calm European nerves. But Australia seems to be taking a particularly hard look. Is this about the data center itself, or is it a broader signal about scrutinizing ByteDance’s footprint? Probably a bit of both.
The Bigger Picture for TikTok
This Australian delay is just one piece of a massive, global puzzle for TikTok. Look at the situation. In the U.S., it’s a political football with a looming ban. In Europe, they’re spending billions to keep data local. Now, in a key Pacific ally, they’re stuck in bureaucratic limbo. Every one of these data centers is a massive, expensive bet to prove they’re not a data pipeline to Beijing. But it’s a bet they have to make. The alternative is being locked out of major markets entirely. It’s a brutal operational reality. Building this stuff is complex enough without adding a layer of international diplomacy to the project plan.
What It Means for Users and Markets
For Australian users? Probably not much in the short term. The app keeps working. But the stakes are higher than just app performance. If TikTok can’t localize data, it gives ammunition to politicians and security hawks who want to restrict it. It becomes a permanent political vulnerability. For the local tech and construction sector, it’s a missed opportunity—a 100MW campus is a huge build. And for other multinationals, it’s a case study. Australia is sending a clear message that owning the infrastructure matters. This isn’t just about where the bits are stored; it’s about who controls the physical boxes they live in. In an era where every server rack is a point of control, that approval from FIRB is more valuable than ever.
