NVIDIA's $200M AI Center in Indonesia to Power Southeast Asia's Tech Boom

NVIDIA has plans to establish a US$ 200 million AI Center in Indonesia, marking its expansion into Southeast Asia. The GPU giant will collaborate with telecommunication provider Indosat Ooredoo Hutchison, aiming to strengthen local telecommunications infrastructure and talent.

Indosat will integrate NVIDIA's Blackwell GPU architecture, which aligns with its commitment to technological progress and national sovereignty. NVIDIA's investment in the US$ 200 million AI Center underscores its strategic focus on Southeast Asia's thriving tech landscape.

Earlier, in February 2024, Singtel, a Singapore Telecommunications company, partnered with NVIDIA to introduce AI capabilities in its Southeast Asia data centers. This collaboration enables regional businesses to access NVIDIA's AI computing power without managing costly data center infrastructure.

Southeast Asia, particularly Singapore, has emerged as a significant revenue source for NVIDIA. A substantial portion of NVIDIA's revenue, about 15% or $2.7 billion, originated from Singapore in the third quarter of 2023, highlighting the region's economic importance.

AI spending in Southeast Asia is forecasted to rise significantly from $174 million in 2022 to $646 million by 2026, with an annual growth rate of 40.8%. The adoption of AI solutions in the region is driven by the desire to enhance productivity, introduce new products faster, and bolster risk management capabilities.