Key Points:
- Nvidia will establish a $200 million AI center in Indonesia’s Central Java province in partnership with Indosat Ooredoo Hutchison.
- Indosat Ooredoo Hutchison announced its readiness to integrate Nvidia’s Blackwell chip architecture into its infrastructure.
- Nvidia’s expansion into Southeast Asia aligns with the region’s growing digital economy and surging data demand.
- Singapore is a significant revenue contributor for Nvidia, highlighting the region’s importance in the company’s growth strategy.
Nvidia, the prominent U.S. technology company, is set to embark on a significant venture in Southeast Asia by establishing a $200 million artificial intelligence center in Indonesia. This endeavor is part of Nvidia’s regional strategic expansion plans, aiming to capitalize on the burgeoning digital economy.
The AI center, developed in partnership with local telecommunications giant Indosat Ooredoo Hutchison, will be in Surakarta, Central Java province. According to Indonesia’s Communication and Information Technology Minister, Budi Arie Setiadi, the facility will enhance local telecommunications infrastructure, nurture digital talent, and bolster Indonesia’s technological capabilities.
Indosat Ooredoo Hutchison, Indonesia’s second-largest mobile telco, recently announced its readiness to integrate Nvidia’s next-generation chip architecture, Blackwell, into its infrastructure. This integration is expected to propel Indonesia into a new era of sovereign AI and technological advancement.
Nvidia’s expansion into Indonesia mirrors its broader push into Southeast Asia, driven by the region’s surging data demand and growing digital landscape. Singapore’s telco provider Singtel unveiled its partnership with Nvidia in January to deploy artificial intelligence capabilities in data centers across Southeast Asia. Singtel aims to provide businesses in the region with access to Nvidia’s cutting-edge AI computing power without extensive investments in data center infrastructure.
Southeast Asia has become a significant revenue contributor for Nvidia, with Singapore playing a pivotal role. Recent filings revealed that about 15% of Nvidia’s revenue, totaling $2.7 billion, originated from Singapore. This surge in revenue marked a substantial increase from the previous year, positioning Singapore as Nvidia’s fourth-largest market.
Nvidia’s latest quarterly earnings report underscored the dominance of data centers in its revenue stream, with global AI enthusiasm driving substantial growth. Data centers contributed $18.40 billion to Nvidia’s revenue, reflecting the company’s strong performance in the AI sector.
