Nvidia plans to construct a new $200 million AI facility in Indonesia as part of its expansion efforts in Southeast Asia.

Expanding its reach in Southeast Asia, technology giant Nvidia has announced plans to construct a new $200 million artificial intelligence facility in Indonesia. This endeavor is part of Nvidia’s collaboration with Indosat Ooredoo Hutchison, a prominent telecommunications company in Indonesia. The facility, to be located in Surakarta, Central Java province, aims to enhance local telecommunications infrastructure, develop digital talent, and strengthen the region’s AI capabilities.

Indosat Ooredoo Hutchison, formed through a merger between Ooredoo and CK Hutchison in 2022, stands as Indonesia’s second-largest mobile telco. Through integrating Nvidia’s next-generation chip architecture, Blackwell, into its operations, Indosat looks to propel Indonesia into a new era of technological advancement and AI sovereignty. Nvidia’s entry into Indonesia signifies a broader strategic move into Southeast Asia, aligning with the region’s increasing demand for digital services amid a thriving digital economy.

In a bid to enhance its AI capabilities, Singapore’s telco leader Singtel has also joined forces with Nvidia to deploy cutting-edge artificial intelligence solutions in data centers across Southeast Asia. The partnership aims to offer businesses in the region access to Nvidia’s advanced AI computing power without the need for extensive infrastructure investments. This collaboration underscores Southeast Asia’s pivotal role as a revenue driver for Nvidia, with notable contributions from countries like Singapore, where the company recorded significant revenue growth and established a strong market presence.

According to recent financial disclosures, Nvidia’s revenue stream heavily relies on data centers, which generated $18.40 billion in revenue driven by global enthusiasm for AI technology. Singapore, accounting for a substantial portion of Nvidia’s revenue, had a revenue surge of 404.1% from the previous year, positioning it as one of the company’s top markets. The growth in revenue from Singapore highlights the increasing significance of Southeast Asia in Nvidia’s global business portfolio, reflecting the region’s growing demand for AI-driven solutions.

The strategic investments by Nvidia in Indonesia and its partnerships in Singapore underscore the company’s commitment to expanding its footprint in Southeast Asia and leveraging the region’s burgeoning digital economy. These initiatives are poised to enhance technological capabilities, foster digital talent, and drive innovation, signaling a new era of growth and collaboration in the AI landscape in the region.

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