Nvidia plans $200 million AI center in Indonesia?

Nvidia intends to establish a $200 million artificial intelligence hub in Indonesia, collaborating with local telecommunications leader Indosat Ooredoo Hutchison. This move reflects the tech giant’s expanding presence in Southeast Asia.

As per Indonesia’s Communication and Information Technology Minister, Budi Arie Setiadi, the forthcoming center will be situated in Surakarta, Central Java province. It aims to enhance local telecommunications infrastructure, develop human resources, and nurture digital talent.

Indosat has not yet provided a comment, and Nvidia had opted not to comment at the time.

In the previous month, Indosat declared its readiness to incorporate Nvidia’s latest chip architecture, Blackwell, into its infrastructure. The objective is to propel Indonesia into a new phase of autonomous AI and technological progress.

Following a merger in 2022 between Qatar’s Ooredoo and Hong Kong’s CK Hutchison, Indosat Ooredoo Hutchison emerged as Indonesia’s second-largest mobile telecommunications provider.

Nvidia’s expanding footprint in Indonesia mirrors a broader expansion into Southeast Asia this year. This move comes in response to escalating data demands within the region, driven by the flourishing digital economy.

Southeast Asia has proved to be a major revenue driver for Nvidia, reports CNBC. A U.S. 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 trailed the U.S., which generated 34.77% of Nvidia revenue, Taiwan with 23.91%, and China and Hong Kong, at 22.24% in sales rankings that quarter.

Revenue from the small nation-state that quarter represented a 404.1% increase from the $562 million recorded in the same period the previous year, outpacing Nvidia’s overall revenue growth and putting it as the company’s fourth largest market.

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