The logo of technology company NVIDIA at its headquarters in Santa Clara, California, on February 11, 2015.
Robert Galbraith | Reuters
Nvidia plans to build a $200 million artificial intelligence center in Indonesia in partnership with local telecoms giant Indosat Ooredoo Hutchison, as the beloved US tech company continues its push into Southeast Asia.
according to Indonesian Minister of Communications and Information TechnologyBudi Arie Setiadi, the new facility will be based in the city of Surakarta in Central Java province and will enhance local communications 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 It is ready to integrate Nvidia's next-generation chip architecture, Blackwell, into its infrastructure, “with the aim of propelling Indonesia into a new era of sovereign AI and technological advancement.”
Indosat Ooredoo Hutchison It is the second largest mobile telecommunications company in Indonesia after the 2022 merger between Qatar's Ooredoo and Hong Kong's CK Hutchison.
Nvidia's growing presence in Indonesia represents a broader push into Southeast Asia this year as demand for data booms in the region on the back of a growing digital economy.
In January, Singaporean telecommunications company Singtel announced Its partnership with Nvidia To deploy AI capabilities in its data centers across Southeast Asia.
Singtail he said in March The initiative will provide companies in the region with access to Nvidia's cutting-edge AI computing power by this year, without customers needing to invest in and manage expensive data center infrastructure.
Southeast Asia has proven to be a major driver of Nvidia's revenue. United State Securities and Exchange Commission filing Last year showed that about 15% or $2.7 billion of the company's revenue for the quarter ended October came from Singapore.
Singapore was second only to the United States, which generated 34.77% of Nvidia's revenue, Taiwan, 23.91%, and China and Hong Kong, 22.24%, in sales rankings that quarter.
Revenue from the small nation-state in that quarter represented a 404.1% increase from the $562 million recorded in the same period a year earlier, outpacing Nvidia's overall revenue growth and placing it as the company's fourth-largest market.
According to Nvidia's latest quarterly earnings report, data centers accounted for the majority of its revenue, generating $18.40 billion on the back of global AI euphoria.
— CNBC's Sheila Chiang contributed reporting.
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