The Bad Placeyahoo news | Bain Capital's data center unit removes disgraced tenant suspected of smuggling ...
Bain Capital’s Bridge Data Centers (BDC) has ended its contract with Megaspeed International at the Malaysian campus, reallocating the 68.4 MW of power capacity previously assigned to the tenant to U.S.–based cloud provider Zenplayer. Bloomberg reports that BDC informed its lenders in February, as part of a $2.8 billion credit line arrangement, that Megaspeed would no longer occupy the space, while Zenplayer will assume the 64.8 MW allocation. The notice did not give a specific reason, but its distribution to financial institutions suggests BDC wants to demonstrate that it does not work with companies under suspicion of illegal activity.
Megaspeed came under intense scrutiny after a New York Times investigation in October 2025 alleged the firm smuggled restricted Nvidia AI accelerators—such as H100 and H800 GPUs worth up to $2 billion—into Indonesia and Malaysia for Chinese customers. The company, founded in 2023 with backing from the PRC government, procured the hardware through Aivres Systems, a U.S. subsidiary of Chinese tech giant Inspur, which had previously been sanctioned for supplying supercomputing hardware to the Chinese military. A late‑2024 inspection by the U.S. Bureau of Industry and Security found sealed Nvidia servers at Megaspeed’s Malaysian site, indicating possible diversion plans, and by mid‑2025 Megaspeed halted all Nvidia purchases and its CEO disappeared.
Removing Megaspeed helps BDC limit heightened U.S. government scrutiny as the race for high‑end AI compute intensifies between the United States and China. Maintaining compliant, stable tenants is crucial for BDC’s financing, especially as it seeks additional capital to expand in Thailand and scale operations in Malaysia amid a regional data‑center market projected to attract roughly $800 billion in investment by 2030. By replacing a suspect tenant with Zenplayer, BDC aims to preserve lender confidence and demonstrate adherence to export‑control regulations while positioning itself for growth in the booming AI‑driven data‑center sector.
Bain Capital's data center unit removes disgraced tenant suspected of smuggling Nvidia GPUs to China — Megaspeed previously alleged to have spent roughly $2 billion on AI processors for illicit distribution
China-linked multi-billion dollar neocloud provider essentially ceases to exist.