- Nvidia is expanding its presence in Southeast Asia, with plans to establish a $200 million AI center in Indonesia in collaboration with Indosat Ooredoo Hutchison.
- This move underscores Nvidia’s broader strategy to tap into the growing digital economy of the region.
- Nvidia’s revenue from Southeast Asia, particularly Singapore, has seen significant growth, highlighting the region’s importance as a key market for the company.
As the global AI wave continues, Nvidia, a leader in AI technology, is further advancing into Southeast Asia. Local officials in Indonesia revealed on Thursday that Nvidia plans to collaborate with the Indonesian telecom giant Indosat Ooredoo Hutchison to establish a $200 million AI centre in Indonesia. According to Indonesian Minister of Communication and Information Technology Budi Arie Setiadi, the new facility will be located in Surakarta, Central Java Province, and will strengthen local telecommunications infrastructure, human resources, and digital talent.
Also read: Schneider, NVIDIA to build AI ‘benchmark’ data centre design
Indosat Ooredoo Hutchisonto will integrate Nvidia’s Blackwell into its infrastructure
Indosat Ooredoo Hutchison, Indonesia’s second-largest mobile telecommunications company, announced last month its intention to integrate Nvidia’s next-generation chip architecture, Blackwell, into its infrastructure, aiming to propel Indonesia into a new era of AI and technological advancement. Nvidia’s expansion in Indonesia signifies the company’s broader penetration into Southeast Asia this year, driven by the surging demand for data in the region’s growing digital economy.
In January, Singapore Telecom announced a collaboration with Nvidia to deploy AI capabilities in its data centers across Southeast Asia. Singapore Telecom stated in March that this initiative would provide Nvidia’s cutting-edge AI computing capabilities to enterprises in the region without the need for them to invest in and manage their expensive data center infrastructure. Southeast Asia has been proven to be one of Nvidia’s major revenue sources.
Singapore is indeed a rapidly growing market for Nvidia
According to documents submitted by Nvidia to the US Securities and Exchange Commission (SEC) last year, approximately 15% (or $2.7 billion) of the company’s quarterly revenue in the fiscal quarter ending in October came from Singapore. Although this proportion still lags behind the United States and China – with the United States accounting for 34.77% of Nvidia’s revenue, Taiwan 23.91%, and mainland China 22.24% – for Nvidia, Singapore is indeed a rapidly growing market: in the quarter, Nvidia’s revenue in Singapore grew by 404.1% compared to the same period last year, surpassing the overall revenue growth rate of Nvidia and becoming the company’s fourth-largest major market.
According to Nvidia’s latest financial report, data centres account for the majority of its revenue. Supported by the global AI wave, data centres generated $18.4 billion in revenue in Nvidia’s latest fiscal quarter.
