China, the world's largest car market, has the biggest fleet of sensor-equipped cars capable of collecting data from congested cities with complicated traffic patterns, making data generated there valuable for automakers and AI providers.
Musk previously expressed opposition to a China-based data center, arguing that data transfer to the United States was the most efficient option.
Since 2021, Tesla has stored data collected by its Chinese EVs in Shanghai. Over that time, Tesla's China team has been seeking approvals from Chinese regulators to transfer data out of the country.
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