Akamai Technologies, a cloud computing and cybersecurity company based in Cambridge, Massachusetts, has announced that its content delivery network (CDN) services in mainland China will be terminated by June 2026.
This decision marks Akamai as the latest foreign technology company to scale back its operations in China amidst geopolitical challenges.
In a recent communication to its clients, Akamai stated, “All Akamai’s CDN services in China will officially cease on June 30, 2026.” After this date, all remaining content requests will be automatically processed by neighboring countries.
For clients wishing to keep their data within China, Akamai has collaborated with Tencent’s cloud services division and ChinaNetCenter to ensure a “smooth and efficient transition” for Akamai’s CDN users in mainland China.
This move entails that before the official shutdown date, Akamai will resell CDN and security services to Tencent and ChinaNetCenter, ending its two-decade-long business presence in China.
As one of the world’s largest and most powerful content delivery network (CDN), cloud service, and cybersecurity providers, Akamai focuses on internet security and was the pioneer of the first global, operator-agnostic, cloud-based DDoS mitigation service.
Fifty percent of Fortune Global 500 companies, 19 out of the top 20 U.S. e-commerce retailers, and seven out of the top ten global banks utilize Akamai’s services.
Cloud computing technology enables businesses to manage or distribute various software and other digital resources on-demand over the internet, similar to accessing electricity from the grid. These resources are stored in data centers.
CDN services involve caching online content (including web pages, images, and videos) in data centers close to the actual location of customers, speeding up access to this content and ensuring its secure delivery.
Currently, Akamai has a substantial business presence in China, with key clients including short video platform operator Kuaishou Technology and video streaming giant iQIYI.
Akamai did not provide an explanation in its client communication for the termination of its CDN services in mainland China, nor did it clarify why corporate clients require a year and a half to complete the transition.
A representative from Akamai stated on Tuesday, “Akamai remains committed to the Chinese market and has not exited China.”
“We will continue to operate and support our business in China while complying with the regulations and laws of the operating country,” the representative added.
At the 2024 financial conference, Akamai’s CEO Tom Leighton mentioned that their CDN business (which accounts for one-third of the revenue) is facing challenges due to “macroeconomic and geopolitical headwinds.”
The trend of global technology companies scaling back their businesses in the Chinese market has become widespread.
In 2024, IBM shut down its China Development Laboratory and China Systems Laboratory, and laid off over 1,000 employees in cities like Beijing, Shanghai, and Dalian.
Other multinational companies undergoing large-scale layoffs include Swedish telecommunications equipment manufacturer Ericsson, electric vehicle maker Tesla, e-commerce giant Amazon, and semiconductor company Intel.