Data Center Operators Face Mounting Compliance Risks Under Evolving U.S. GPU Export Controls
December 1, 2025
The explosive growth of artificial intelligence has cemented Graphics Processing Units (GPUs) as the critical engine of modern data centers, prized for their unparalleled parallel processing power in training complex AI models and handling massive datasets. However, this technological linchpin has become a focal point of intense geopolitical and regulatory scrutiny, placing data center operators worldwide in a complex web of compliance obligations.
The regulatory landscape is in a state of flux, creating significant uncertainty for the industry. In January 2025, the Biden administration implemented sweeping restrictions, known as the January 2025 AI Diffusion Rule, aimed at curbing the export and potential misuse of advanced GPUs for military or malign purposes. While the subsequent Trump administration has revoked those specific rules, it has signaled a policy of continuing and even tightening such controls, promising a new, yet-to-be-issued framework. This interim period leaves operators grappling with how to manage both current and anticipated future restrictions on these essential components.
A critical shift in enforcement perspective is upending traditional assumptions. Data center operators who merely host their tenants' GPU-powered servers, rather than exporting the hardware themselves, previously may have considered U.S. export controls a peripheral concern. This is no longer a safe position. U.S. Export Administration Regulations (EAR) impose "in perpetuity" controls on the covered GPU hardware. Consequently, even non-U.S. data center providers could face liability if restricted GPUs, related controlled technology, or sanctioned end-users are present within their facilities—whether through direct tenants or sub-tenants.
As regulators increasingly focus on the downstream custody and application of advanced computing hardware, operators must establish robust compliance and control frameworks. This necessitates detailed knowledge of what specific GPUs are hosted, their origin of development and manufacture, their ownership and access profiles, and their intended use cases. “This GT Advisory considers how data center operators who merely host GPU servers might navigate this hugely sensitive area,” the analysis notes, highlighting the heightened stakes for pure hosting services.
The advisory underscores that proactive measures are essential for mitigating regulatory and reputational risk. In this environment of heightened scrutiny, demonstrating thorough due diligence and control over high-performance computing assets hosted within a data center is becoming a fundamental operational requirement, not merely a legal formality.
Source: natlawreview
