According to the report, ByteDance is collaborating with Southeast Asian cloud provider Aolani Cloud to deploy around 500 Nvidia Blackwell computing systems in Malaysia, incorporating roughly 36,000 B200 chips.

The computing infrastructure project could cost more than $2.5 billion, the report said, citing people familiar with the matter.

Aolani Cloud currently operates hardware worth about $100 million, according to the report, meaning the proposed deployment would represent a major expansion of its existing capacity.

ByteDance plans to use the new computing resources to advance AI research and development outside China and to meet rising demand from international customers for artificial intelligence services.

The arrangement reflects how global technology companies are structuring data infrastructure to comply with export controls governing the sale of advanced semiconductors.

An Nvidia spokesperson said current export regulations allow cloud infrastructure to be built and operated outside countries subject to restrictions.

“By design, the export rules allow clouds to be built and operated outside controlled countries. Winning the business of those clouds will bring tens of billions of dollars and high paying jobs home,” the spokesperson said.

The new charges will apply to advertisements shown on services operated by the company, including Facebook, Instagram and WhatsApp, and will be calculated based on where the audience is located rather than where the advertiser is based, according to a notification sent by the company to advertisers.

The policy means businesses outside Europe, including brands from the Middle East and North Africa, will incur additional costs when running campaigns targeting users in markets such as United Kingdom, France or Italy.

The decision follows a broader trend among major technology companies that have begun passing on the cost of European digital services taxes to advertisers, a move that reflects growing regulatory pressure on global digital platforms operating across multiple jurisdictions.

Under the new pricing structure, advertisers will pay a surcharge depending on the country where the ad is viewed. Ads targeting users in the United Kingdom will carry a 2% location fee, while campaigns reaching audiences in France, Italy and Spain will incur a 3% charge.Higher surcharges of 5% will apply to advertisements delivered to audiences in Austria and Turkey.

In a communication sent to advertisers, the company provided an illustration of how the system will operate. A campaign delivering $100 worth of advertising to users in Italy, where the location fee is 3%, would result in a total charge of $103 before the application of any value-added tax.

“Note that any applicable VAT will be calculated on top of the total amount,” the company said in the message to advertisers, according to the notification initially reported by Bloomberg.

By tying the surcharge to the viewer’s location rather than the advertiser’s headquarters, the policy ensures that companies targeting consumers in affected European markets will pay the additional costs regardless of where their business is registered or where advertising payments originate.

The changes could affect a wide range of businesses that rely on digital advertising to reach European consumers, including brands from the Middle East that have expanded their presence in European retail and travel markets.

Companies in sectors such as fashion, tourism, hospitality and media increasingly use targeted social media advertising to reach audiences across borders. For businesses headquartered in countries including Saudi Arabia, United Arab Emirates and Egypt, the additional charges represent another cost factor in campaigns that already involve complex budgeting across currencies, markets and regulatory environments.

Advertising on social media platforms has become a central component of international marketing strategies, particularly for brands seeking to engage consumers in multiple regions simultaneously. The introduction of location-based fees adds a further variable to the cost structure of such campaigns.

Because the surcharge applies automatically based on the user’s location, advertisers targeting several European countries within a single campaign could face different effective costs depending on the geographic distribution of their audience.

The surcharges are designed to offset digital services taxes introduced by several European governments in recent years. These taxes are typically calculated as a percentage of revenues generated by large digital platforms within a specific country.The measures were introduced as national governments sought to capture a share of the economic value generated by multinational technology firms operating within their borders.

Countries such as France began implementing digital services taxes as early as 2019, arguing that existing international tax frameworks did not adequately account for the revenues global technology companies earn from local users and advertising markets.

Although the European Union has debated broader tax reforms for the digital economy, most digital services taxes currently in force are implemented at the national level rather than across the bloc as a whole.

Technology companies have long argued that such taxes disproportionately target U.S.-based firms and could lead to higher costs for businesses using digital advertising services.

The United States government has previously criticised digital services taxes imposed by European countries, saying the measures unfairly single out American technology companies with large global footprints.

Meta’s decision mirrors similar policies adopted by other large technology platforms.

Companies including Google and Amazon have also introduced mechanisms that pass the cost of European digital taxes onto advertisers or sellers using their platforms.Industry analysts say such measures reflect the growing financial impact of regulatory policies affecting the global digital economy.

Advertising remains the core revenue source for Meta, whose platforms collectively serve billions of users worldwide and provide businesses with targeted marketing tools that allow advertisers to reach audiences based on demographics, interests and geographic location.

As governments around the world expand taxation frameworks for digital services, global technology firms have increasingly adjusted pricing structures to reflect those obligations.The introduction of location-based surcharges highlights the complex relationship between digital platforms, national tax policies and international advertisers that rely on global online networks to reach consumers.

Meta did not immediately respond to requests for comment regarding the policy change.

Plans unveiled during the opening of China’s annual parliamentary session last week placed artificial intelligence at the center of the country’s economic strategy, outlining ambitions to use the technology to raise productivity and address structural challenges including an ageing workforce and slowing growth.

Chinese policymakers said large-scale deployment of artificial intelligence could help offset labour shortages and support economic expansion in the coming years. Officials have framed the technology as a key pillar in modernizing the economy and boosting industrial efficiency.

Government plans emphasize the “job-creation” potential of artificial intelligence over the next five years, positioning it as a tool to stimulate productivity across sectors while supporting broader economic reforms.

The strategy comes as global debate intensifies over the potential impact of artificial intelligence on labour markets. While experts warn the technology could replace certain roles, Chinese officials have sought to reassure the public that new sectors and services will generate additional employment opportunities.

Policymakers have also acknowledged that adjustments to welfare systems may be necessary as the labour market evolves alongside technological change, particularly for younger workers entering the workforce.

Educational institutions across China have begun expanding programmes aimed at preparing students and workers for an economy increasingly shaped by artificial intelligence. Universities are promoting reskilling initiatives designed to equip graduates with technical and digital capabilities aligned with emerging industries.

The initiatives form part of a broader effort to integrate advanced technologies into the country’s long-term economic development strategy while addressing demographic and productivity challenges.

The prospective agreements would build on contracts signed last year between the Chinese telecoms suppliers and Vietnamese partners as the Southeast Asian country accelerates the rollout of next-generation digital infrastructure.People familiar with the matter said discussions over additional deals are ongoing and could be announced in the coming months. The timing may coincide with a potential visit to China by Vietnam’s Communist Party chief To Lam, although no official confirmation of the trip has been made.Expansion of 5G cooperationVietnam has been expanding its telecommunications infrastructure as part of a broader strategy to modernise its digital economy and improve nationwide connectivity. Chinese equipment manufacturers have historically been major suppliers to telecom operators across Asia due to competitive pricing and established infrastructure capabilities.Sources said last year’s agreements between Vietnamese firms and the Chinese vendors focused on providing equipment and technical support for elements of the country’s emerging 5G network.Further agreements under discussion would deepen that cooperation, potentially covering additional infrastructure components and services as Vietnam continues its nationwide rollout.Neither Vietnamese government agencies nor the Chinese companies involved have publicly commented on the potential new arrangements.U.S. security concernsWashington has repeatedly warned governments around the world about the potential security risks associated with Chinese telecommunications providers, arguing that their equipment could be vulnerable to state interference or surveillance.

Officials from the United States have urged allies and partners to limit the involvement of Chinese companies in critical digital infrastructure, particularly in the deployment of 5G networks.Both Huawei and ZTE have consistently rejected allegations that their technology poses security risks and say they operate independently of the Chinese government.Vietnam has traditionally balanced strategic relations with both the United States and China, maintaining economic and political ties with the two powers while pursuing an independent foreign policy.

Diplomatic contextThe potential telecom agreements come amid broader diplomatic engagement between Hanoi and Beijing.People familiar with regional diplomacy said discussions about technology cooperation could precede a possible visit by To Lam to China, which would mark one of his first major overseas engagements since assuming leadership of the Vietnamese Communist Party.China remains one of Vietnam’s largest trading partners, while the United States has expanded economic and strategic cooperation with Hanoi in recent years, particularly in areas such as technology supply chains and regional security.Analysts say decisions about telecommunications infrastructure have increasingly become intertwined with geopolitical considerations as governments weigh economic benefits against strategic and security concerns.Vietnam has not publicly indicated whether it plans to restrict Chinese suppliers from its 5G networks, and telecommunications policy decisions are typically made through a combination of government regulation and commercial agreements between telecom operators and equipment providers.