APAC-based Bridge Data Centres has removed a Southeast Asian provider from its data centers amidst a probe into chip smuggling, according to a Bloomberg report.

Singapore-based provider Megaspeed International Pte had been allocated 68.4MW of capacity at one of Bridge's Malaysian data centers. This capacity has since been given to cloud computing company Zenlayer, according to a memo sent by Bridge to its lenders in February, Bloomberg claims.

Megaspeed denies any ties to smuggling. DCD was unable to independently verify Bloomberg's report.

Bridge told DCD in a statement: "For confidentiality reasons, we do not comment on specific commercial matters."

Bridge has been looking to fund its expansion by seeking loans, and it was reported last month that the company was in talks with lenders for a loan of up to $6 billion.

Although Bridge did not provide a reason for the switch, Megaspeed has been under investigation by American and Singaporean authorities after a New York Times report last October alleged that the company had violated US export controls.

The report claims that Megaspeed had been smuggling chips into China while also leasing compute to Chinese companies from data centers using Nvidia chips in Southeast Asia.

Megaspeed denies that it was involved in illegal chip transfers and claims that the company has undergone inspections and reviews by the US Commerce Department, Malaysia’s Ministry of Investment, Trade and Industry, and Nvidia.

“We would like to clarify that the article contains misleading information and incorrect insinuations, including suggestions that we may have been involved in illegal chip transfers,” referring to an earlier article about Megaspeed written by Bloomberg.

“We operate fully within the bounds of all applicable export control regulations and maintain the highest standards of legal and ethical conduct,” reads the statement published on Megaspeed’s website.

Correction: This article has been updated with Bridge Data Centres' new logo, and with comment from Bridge.