Within data centers, Graphics Processing Units (GPUs) have emerged as key components, transforming how complex computations are handled. GPUs are employed for their ability to perform parallel data processing, making them ideal for a range of tasks, including scientific computations, machine learning algorithms, and processing large-scale data. As demand for infrastructure capable of supporting AI model training and inference has grown, the ability to host GPU servers has become increasingly important for data centers.
The increase in processing power that GPUs provide as compared to central processing units (or CPUs) has, however, given rise to disquiet amongst Western governments. In particular, the United States — where the biggest producers of GPUs are based — has expressed concern over their potential application for military and malign uses, and the Biden administration in January 2025 introduced comprehensive restrictions on the export and use of GPUs (the January 2025 AI Diffusion Rule). The Trump administration has also emphasized as a policy imperative the continuation (and even tightening) of these restrictions and has revoked the Biden-era restrictions and indicated that it will be replacing them with new restrictions, which as of the date of this GT Advisory have not yet been issued. This regulatory uncertainty leaves industry in an interim phase questioning how best to manage current and possible future restrictions on GPU exports and use.
Historically, data center operators that merely hosted the GPU servers of their tenants (rather than exporting or providing GPUs as a service) may have assumed U.S. export controls were not a material compliance concern. That assumption, however, may no longer be appropriate. U.S. export controls apply to the GPU hardware in perpetuity— meaning that even non-U.S. operators may face liability under the Export Administration Regulations (EAR) if restricted GPUs, controlled technology, or sanctioned end users are present in their facilities, even indirectly through tenants or sub-tenants. As regulators focus increasingly on the downstream use and custody of advanced computing hardware, data center operators should be prepared to demonstrate robust compliance measures and control frameworks. This includes knowing what GPUs are being hosted, where they were developed and manufactured, who owns and accesses them, and for what purposes they are used. This GT Advisory considers how data center operators who merely host GPU servers might navigate this hugely sensitive area.
We have produced this GT Advisory to give an overview of the current U.S. export and use restrictions and to offer insights that participants in this sector may want to consider to mitigate regulatory and reputational risk and prepare for future regulatory changes.