Chinese AI firms tap Norwegian data centres to train models amid US chip restrictions

Norwegian data-centre operator Nscale is building several large facilities in Norway that are being used by Chinese AI giant Bytedance to train machine-learning models. The relationship is disclosed in Nscale’s extensive IPO prospectus, where Bytedance is referenced only through a Singapore-registered company despite accounting for the majority of Nscale’s 2025 revenue. While the contract complies with existing laws, analysts warn it creates regulatory and image risks for the Norwegian firm.

The practice occurs against a backdrop of U.S. efforts to curb AI development in China by limiting direct access to advanced chips, a policy reinforced by Nvidia’s decision not to sell GPUs to Chinese customers. The situation underscores the growing use of proxy locations for AI training and the geopolitical tension surrounding technology supply chains.