Cybersecurity firm plans data center in China

Russian cybersecurity company Kaspersky is planning a data center in South China, most likely in Guizhou province, after having made investments since the beginning of the year, said an executive.

Adrian Hia, managing director of Kaspersky for the APAC (Asia Pacific) region, said: "In light of China's data market trend toward integration in the Guangdong-Hong Kong-Macao Greater Bay Area, we are committed to exploring more opportunities within it and delivering tailored managed detection and response services for cloud data security to our clients. In the current landscape where many countries are emphasizing data sovereignty, having a local presence is essential for us." Hia said the company is also considering other locations like Tianjin.

Hia's remarks come as China is stepping up efforts to promote the construction of a national integrated computing power network, encompassing data centers, cloud computing and integrated data management while optimizing resources in different areas. This initiative not only promotes the development of the digital economy, but also helps narrow regional disparities, said experts.

During a recent conference, Wang Jingtao, deputy director of the Cyberspace Administration of China, revealed that China has successfully registered and launched over 180 large-scale generative artificial intelligence service models designed to meet the public's needs, with a registered user base exceeding 564 million. Given the increasing significance of cybersecurity, especially data protection in this context, the active engagement of businesses, social organizations and other stakeholders is crucial.

In response to the growing demand for data protection, the government has rolled out a series of measures to strengthen relevant laws, regulations and policies in order to enhance national capabilities to ensure data security.

Notably, last year, 16 government departments — including the Ministry of Industry and Information Technology — issued guidance to promote the development of the data security industry. These directives prioritize tasks such as boosting industrial innovation, enhancing data security services and advancing the establishment of a robust standards framework. The overarching goal is to surpass a data security industry valuation of over 150 billion yuan ($20.9 billion) by 2025.

"With China's rapid digital economy growth in recent years, the country's focus on cybersecurity, especially data protection, has intensified. It's an important market for us," Hia said.

Hia said Kaspersky will concentrate on addressing cybersecurity challenges and offering solutions encountered by Chinese companies who have overseas operations, helping them secure data from foreign customers in overseas markets. This includes adapting to diverse cybersecurity landscapes — especially under different countries' laws regarding data protection — better understanding foreign clients' information management, and defending against potential cyberthreats in various markets based on Kaspersky's diverse market experience, which has a presence in more than 200 countries.

"Simultaneously, the increasing prevalence of AI has made detecting cyberattacks more complex. Kaspersky will utilize AI to enhance the efficiency of virus and cyberattack analysis," said Hia, emphasizing that the company will also actively develop solutions to confront the emerging challenges in network security posed by the proliferation of the internet of things and connected vehicles.

Igor Kuznetsov, director of Kaspersky's global research and analysis team, further clarified that the security risks linked to large language models in AI primarily arise from the potential misuse of the technology by fraudsters to set up phishing websites or other forms of attacks, which complicate users' ability to discern.

One recent example was a Hong Kong financial sector employee who paid out over $25 million to fraudsters after a video conference with an AI-faked senior executive.

Hia said that while AI poses new challenges to cybersecurity, it can also boost the effectiveness of safeguarding networks. "Given the daily influx of 400,000 new viruses worldwide, it's impractical to manually analyze and distinguish between malicious and benign ones. We have been leveraging AI for years, and now we are harnessing AI more efficiently. For instance, we not only ascertain the authenticity of a virus, but also determine the appropriate response."