Nvidia is set to invest $200 million in an artificial intelligence center in Surakarta, Central Java, Indonesia, in collaboration with local telecommunications leader Indosat Ooredoo Hutchison. This initiative marks Nvidia’s continuous expansion into Southeast Asia, aligning with the growing demand for digital infrastructure in the region.
Indonesia’s Communication and Information Technology Minister, Budi Arie Setiadi, indicated that the new facility will enhance local telecommunications capabilities, workforce development, and digital skills. Although Indosat did not provide comments, Nvidia chose to refrain from discussing the project at this time.
In a recent move, Indosat expressed its readiness to integrate Nvidia’s next-generation chip architecture, Blackwell, into its operations. The aim is to drive Indonesia towards a more autonomous AI landscape.
Following a successful merger in 2022, Indosat Ooredoo Hutchison has become the country’s second-largest mobile provider. Nvidia’s investment signals a strategic initiative to tap into the booming digital economy, as rising data demands fuel growth across Southeast Asia.
January saw Singapore’s Singtel unveil a partnership with Nvidia aimed at incorporating AI capabilities within its regional data centers. This collaboration will afford businesses access to Nvidia’s advanced AI resources without the burden of substantial investments in data center infrastructure.
Nvidia’s activities in Southeast Asia have proven lucrative. Recent SEC filings revealed that around 15% of its revenue, amounting to $2.7 billion for the last quarter, originated from Singapore alone. This growth trajectory, marked by a staggering 404.1% increase from the same quarter in the previous year, underscores the region’s significance within Nvidia’s global strategy.
Overall, Nvidia’s latest quarterly earnings report highlights that data centers remain the backbone of its revenue, generating an impressive $18.40 billion amid an accelerating global interest in AI technologies.
