Nvidia to build a $200 million AI center in Indonesia amid Southeast Asia push

Nvidia is planning to construct a $200 million synthetic intelligence middle in Indonesia in partnership with native telco big Indosat Ooredoo Hutchison, because the U.S. tech darling continues its push into Southeast Asia. 

Based on Indonesia’s Communication and Info Know-how Minister, Budi Arie Setiadi, the brand new facility can be primarily based within the metropolis of Surakarta within the Central Java province and can bolster native telecommunications infrastructure, human sources, and digital expertise.

Indosat didn’t reply to a request for remark, whereas Nvidia declined to touch upon the matter.

Final month, Indosat introduced that it was able to combine Nvidia’s next-generation chip structure, Blackwell, into its infrastructure, with “the aim of propelling Indonesia into a brand new period of sovereign AI and technological development.”

Indosat Ooredoo Hutchison is Indonesia’s second-largest cell telco after a 2022 merger between Qatar’s Ooredoo and Hong Kong’s CK Hutchison.

Nvidia’s elevated presence in Indonesia represents a broader push into Southeast Asia this 12 months as information demand within the area booms on the again of the rising digital financial system.

In January, Singapore telco supplier Singtel introduced its partnership with Nvidia to deploy synthetic intelligence capabilities in its information facilities throughout Southeast Asia. 

Singtel mentioned in March that the initiative would offer companies within the area with entry to Nvidia’s cutting-edge AI computing energy by this 12 months, with out the necessity for purchasers to spend money on and handle their very own costly information middle infrastructure.

Southeast Asia has proved to be a significant income driver for Nvidia. A U.S. Securities and Change Fee submitting final 12 months confirmed that about 15% or $2.7 billion of the corporate’s income for the quarter ended October got here from Singapore. 

Singapore trailed the U.S., which generated 34.77% of Nvidia income, Taiwan with 23.91%, and China and Hong Kong, at 22.24% in gross sales rankings that quarter.

Income from the small nation-state that quarter represented a 404.1% enhance from the $562 million recorded in the identical interval the earlier 12 months, outpacing Nvidia’s general income progress and placing it as the corporate’s fourth largest market. 

Based on Nvidia’s newest blowout quarterly earnings report, information facilities comprised the vast majority of its income, producing $18.40 billion on the again of worldwide AI euphoria.

— CNBC’s Sheila Chiang contributed to the report.