Nvidia to Invest $200 Million in AI Data Center in Indonesia

Nvidia is expanding its presence in Southeast Asia by partnering with Indosat Ooredoo Hutchison to build a $200 million AI data center in Indonesia.

The new facility will be located in the city of Surakarta in Central Java and will boost local connectivity infrastructure and digital talent and resources, according to Budi Ari Setiadi, Indonesia’s Minister of Communication and Information Technology.

Last month, Indosat announced that it was ready to integrate Blackwell (Nvidia’s next-generation architecture) into its infrastructure with the aim of propelling Indonesia into a new era of AI.

Indosat Ooredoo Hutchison is the second-largest mobile operator in Indonesia, formed in 2022 from the merger of Ooredoo of Qatar and CK Hutchison of Hong Kong.

Nvidia’s entry into Indonesia means that the green team will be expanding its presence in Southeast Asia this year, as demand for AI data is rapidly growing there thanks to the growth of the digital economy.

In January, Singapore telecom operator Singtel announced a collaboration with Nvidia to deploy AI capabilities in its data centers across Southeast Asia.

Singtel said its new project will allow businesses in the region to tap into Nvidia’s advanced AI computing power without the need to invest in and manage expensive data center infrastructure themselves, starting this year.

Southeast Asia has proven to be a key revenue driver for Nvidia. According to a filing with the U.S. Securities and Exchange Commission, about 15% of its sales, or $2.7 billion, were generated in Singapore in one of the quarters of its last fiscal year.

According to Nvidia’s latest quarterly earnings report, data centers have become the company’s largest revenue segment, thanks to AI.

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