The U.S. Department of Commerce will now allow foreign data centers to apply for inclusion in its Validated End User program regulating and licensing U.S. exports of advanced computing semiconductor chips for artificial intelligence applications.
The Bureau of Industry and Security within the department says that including data centers in the VEU program will ease the U.S. chip industry’s licensing burdens, as it will facilitate shipments to data center importers preapproved through a general authorization instead of exports needing multiple individual permits.
Data center admission to the VEU will be through an interagency vetting process involving the departments of Commerce, Defense, Energy and State.
“Through the data center VEU program, working with our interagency partners, we will ensure that data centers that demonstrate commitment to the highest security standards obtain facilitated access to advanced U.S. technological innovation,” said Assistant Secretary of Commerce for Export Administration, Thea D. Rozman Kendler.
Reuters reported that the VEU expansion could ease AI chip shipments to Middle East data centers.
According to Alan Estevez, commerce undersecretary for industry and security, the BIS is commited to promoting AI development while mitigating technological risks to U.S. and global security.
“The data center VEU program will rigorously vet applicants to ensure that any authorization includes appropriate safeguards and security measures that protect our most advanced technologies,” he said.
In October 2023, BIS granted general authorization instead of individual export licenses to update the VEU status of South Korean chip manufacturers Samsung and SK hynix to enable them to operate their factories in China.