Chinese and Russian-made technology will be effectively banned from cars in the American market under a new rule finalised by the US government.
The decision was made amid US concerns technology on so-called smart cars could pose a risk to national security.
It came on the same day US president Joe Biden announced an executive order, opening up the development of data centres to power artificial intelligence (AI) on federal land.
Commerce secretary Gina Raimondo said the new rules would even apply to cars manufactured in the United States saying they would be banned from sale if they contained a "sufficient nexus" to Russia or China.
The rules would apply to Chinese and Russian software for model year 2027 cars, with imports of hardware taking effect in 2030.
It will apply to passenger cars, but could be extended to trucks and buses in the near future.
"This is a targeted approach to ensure we keep [the People's Republic of China] and Russian-manufactured technologies off American roads," Ms Raimondo said.
"Cars today aren't just steel on wheels — they're computers."
Ms Raimondo said many modern cars contained cameras, microphones, GPS tracking and other technologies connected to the internet.
That could affect Chinese electric vehicle manufacturer BYD, which currently builds buses at a facility in California.
The US has been increasingly attempting to curb Chinese imports on key technologies, such as solar panels.
A Biden administration ban on Chinese-owned social media giant TikTok is expected to take effect on January 19, a day before Donald Trump is inaugurated as US president.
Biden orders AI for federal land
On the same day as the car rules were unveiled, US president Joe Biden signed an executive order opening up federal land to hosting the data centres which power artificial intelligence.
In a statement, the outgoing president said he wanted the "historic" order to enable the US to "build the next generation of AI infrastructure".
It will include opening up land owned by the Defence Department to host AI data centres, and requiring developers to use renewable energy to power them.
"We will not let America be outbuilt when it comes to the technology that will define the future, nor should we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water," Mr Biden said.
The executive order follows the United Kingdom's prime minister, Keir Starmer, outlining his government's strategy to boost the country’s public service through AI.
But the environmental impacts of the industry are causing alarm with a study released last year finding AI could generate up to 2.3 million tonnes of electronic waste (or e-waste) by 2030.
Mr Biden's executive order does not mention any stipulations around recycling or management of e-waste.
However, the executive order does force companies building data centres on federal land to bring online new clean energy, so "this development does not raise electricity prices for consumers".
Various departments would also be tasked with upgrading transmission lines around federal sites to support the industry.
