The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California on February 11, 2015.
Robert Galbraith | Reuters
Nvidia is planning to build a $200 million artificial intelligence center in Indonesia in partnership with local telco Indosat Ooredoo Hutchison, as the US tech darling continues its push into Southeast Asia.
According to Indonesia’s Minister of Communications and Information Technology, Bodi Ari Setiadi, the new facility will be located in the city of Surakarta in Central Java province and will strengthen local telecommunications infrastructure, human resources and digital talent.
Indosat did not respond to a request for comment, while Nvidia declined to comment on the matter.
Last month, Indosat announced that it was ready to integrate Nvidia’s next-generation chip architecture, Blackwell, into its infrastructure, with the goal of “leading Indonesia into a new era of autonomous AI and technological advancement.” to increase.”
Indosat Ooredoo Hutchison is Indonesia’s second largest mobile telco following a 2022 merger between Qatar’s Ooredoo and Hong Kong’s CK Hutchison.
Nvidia’s increased presence in Indonesia represents a broader push into Southeast Asia this year as demand for data in the region grows on the back of a growing digital economy.
In January, Singapore telco provider Singtel announced its partnership with Nvidia to deploy artificial intelligence capabilities in its data centers in Southeast Asia.
Singtel said in March that the move would give businesses in the region access to Nvidia’s cutting-edge AI computing power by this year, without requiring clients to invest in and manage their own expensive data center infrastructure. .
Southeast Asia has proven to be a major revenue driver for Nvidia. About 15% of the company’s revenue, or $2.7 billion, came from Singapore for the quarter ended in October, filings with the US Securities and Exchange Commission showed last year.
Singapore overtook the US, which accounted for 34.77% of Nvidia’s revenue, Taiwan with 23.91%, and China and Hong Kong, at 22.24% in the sales ranking this quarter.
Revenue from the small nation-state in the quarter showed a 404.1% increase from the $562 million recorded in the same period last year, outpacing Nvidia’s overall revenue growth and making it the company’s fourth-largest market. presented as
According to Nvidia’s latest blowout quarterly earnings report, data centers make up the majority of its revenue, bringing in $18.40 billion thanks to the global AI boom.
– CNBC’s Sheila Chiang contributed to the report.