As the global frenzy for artificial intelligence continues, NVIDIA, a leading force in the AI wave, is advancing into Southeast Asia.Indonesian officials revealed on Thursday, local time, that NVIDIA is planning to collaborate with Indonesian telecom giant Indosat Ooredoo Hutchison to invest $200 million in establishing an AI center in Indonesia.
NVIDIA Gears Up for a Deeper Foray into Southeast Asia
According to Budi Arie Setiadi, Indonesia’s Minister of Communication and Information Technology, the new facility will be located in Surakarta City, Central Java Province, enhancing local telecommunications infrastructure, human resources, and digital talent.
Indosat Ooredoo Hutchison, Indonesia’s second-largest mobile telecom company, announced last month its plan to integrate NVIDIA’s next-generation chip architecture, Blackwell, into its infrastructure. “The goal is to propel Indonesia into a new era of artificial intelligence and technological advancement,” the company stated.
NVIDIA’s expansion in Indonesia signifies a broader push into Southeast Asia this year. The region is experiencing a surge in data demand against the backdrop of a growing digital economy.
In January, Singapore Telecommunications announced a collaboration with NVIDIA to deploy AI capabilities across its data centers in Southeast Asia.
According to Latest news that Singapore Telecommunications stated in March that the initiative would provide businesses in the region with NVIDIA’s cutting-edge AI computing capabilities by the end of the year, without the need for customers to invest in and manage their costly data center infrastructure.
Southeast Asia: A crucial market for NVIDIA
Southeast Asia has proven to be one of the main revenue sources for NVIDIA.
According to documents NVIDIA filed with the US Securities and Exchange Commission (SEC) last year, approximately 15% of the company’s quarterly revenue in the fiscal quarter ending October last year, which amounts to $2.7 billion, came from Singapore.
While still trailing behind the United States and China — with the U.S. accounting for 34.77% of NVIDIA’s revenue, Taiwan 23.91%, and mainland China 22.24% — Singapore is indeed a rapidly growing market for NVIDIA. The company’s revenue in Singapore grew by 404.1% over the same quarter in the previous year, reaching $5.62 billion, surpassing NVIDIA’s overall revenue growth rate and making it the company’s fourth largest market.
According to NVIDIA’s latest financial report, data centers constitute a significant portion of its revenue. Supported by the global AI craze, data centers generated $18.4 billion in revenue in the latest fiscal quarter.
