TikTok owner ByteDance plans to set up data centre in India amid series of privacy concerns and controversies

Chinese internet company ByteDance is planning to set up a data centre in India to store information of Indian users. It comes right after the Indian government issued notices to ByteDance-owned TikTok and Helo along with a set of 24 questions over allegations of misuse of platforms for "anti-national activities" in India.

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"As a testimony to ByteDance's recognition of India's efforts to frame a new data protection legislation, we are pleased to announce that we are taking a significant step towards establishing a data centre in India," ByteDance said in its blog post. "We are now in the process of examining options for safe, secure and reliable services for our Indian users within India's borders." 

ByteDance also said that data of Indian users is stored at third-party data centres in the US and Singapore.

"Since the launch of our platforms in India, we have stored the data of our Indian users at industry-leading third-party data centres in the U.S. and Singapore...We now believe that the time has come to take the next big leap."

While ByteDance is yet to provide more details, ByteDance has reportedly started discussions with local players and it could take between 6-18 months to start the process of data localisation.

Republic World has learnt that ByteDance's future plan for a data centre in India is part of the company's existing plan to invest $1 billion in the country over the next three years. Earlier, ByteDance reassured its commitment to developing technology infrastructure in India.

The Indian government is crafting a personal data protection bill (PDP), which is similar to the European General Data Protection Regulation (GDPR).

Consent of data subject and minimum collection of data and its destruction after use are mandatory requirements here. The bill restricts and imposes conditions on the cross-border transfer of personal data and proposes penalties for violation.

ByteDance, which is considered among the world's most valuable startups, is backed by SoftBank, General Atlantic, KKR and Sequoia.

The company's viral video app TikTok, which is constantly fighting one crisis after the other in India, has over 200 million users in the country.

Previously, Madras High Court briefly banned TikTok in India over concerns of "encouraging pornography." The order was later lifted and the app was back on app stores.

In related news, the Tamil Nadu government is planning to ban TikTok in light of media reports on deaths of users.

(With inputs from PTI)