Nvidia, the American multinational technology corporation, is set to establish a $200 million Artificial Intelligence (AI) Center in Indonesia, signaling a significant expansion into Southeast Asia. The move comes in response to the region’s growing demand for data, driven by its expanding digital economy.
Partnering with telecommunications firm Indosat Ooredoo Hutchison, Nvidia aims to bolster local telecommunications infrastructure and nurture digital talent in Indonesia. The integration of Nvidia’s cutting-edge Blackwell GPU architecture into Indosat’s infrastructure represents a major leap forward in advancing the country’s AI capabilities and technological sovereignty.
This strategic investment in Indonesia is part of Nvidia’s broader push into Southeast Asia, where the company has been actively forging partnerships to strengthen its presence in the region’s rapidly evolving tech landscape. For instance, in February 2024, Nvidia collaborated with Singapore Telecommunications company Singtel to deploy AI capabilities in data centers across Southeast Asia, providing businesses with access to top-notch AI computing power.
Notably, Southeast Asia has become a vital revenue driver for Nvidia, as evidenced by substantial revenue growth in Singapore. A significant portion of Nvidia’s revenue, around 15%, came from Singapore in the third quarter of 2023, highlighting the region’s importance in the company’s financial performance.
The demand for AI solutions in Southeast Asia is expected to surge, with spending projected to increase significantly in the coming years. The market for AI tech in the region is forecasted to have an annual growth rate of 40.8% from 2021 to 2026, underscoring the immense potential for further development and innovation in the AI space in Southeast Asia.
