TikTok owner ByteDance has reportedly backed out of plans to lease additional data center capacity in Ireland, according to a report by The Business Post.

The company opened its first data center in Dublin back in September 2023 as part of ‘Project Clover,’ a €12 billion ($14 billion) initiative that aims to address the data privacy concerns of EU countries by moving the processing and storage of European users into European data centers. The Chinese firm is reportedly leasing from local operator Echelon.

TikTok’s Chinese ownership has been a prickly issue for the company, and in January, it was forced to give up a majority stake in its US operations in order to sidestep a ban passed during the twilight days of the Biden administration.

ByteDance had planned to lease additional capacity in Ireland from Echelon Data Centres’ DUB10 facility in Clondalkin, located west of downtown Dublin.

But The Business Post reports that ByteDance will no longer do so.

DCD has reached out to TikTok, ByteDance, and Echelon for comment.

Founded in 2016, Echelon has 1.2GW worth of data center capacity in its pipeline with some 400MW operational or under development. Other than Ireland, the company operates data centers in the UK, Spain, and Italy.

The company, which is owned by private investment firm Starwood Capital, secured a €1.7 billion ($1.97bn) loan from Morgan Stanley last week to fuel its build-out.