Nvidia to Build $200 Million AI Center in Indonesia with Indosat Ooredoo Hutchison

Nvidia to Establish $200 Million AI Center in Indonesia

Nvidia, the U.S. technology company, is making plans to build a new artificial intelligence center in Indonesia through a partnership with the local telecommunications giant Indosat Ooredoo Hutchison. The project is expected to involve an investment of $200 million and represents Nvidia's efforts to expand its presence in Southeast Asia.

Location and Objectives of the New Facility

According to Indonesia's Communication and Information Technology Minister, Budi Arie Setiadi, the upcoming facility will be situated in Surakarta, located in the Central Java province. The center aims to enhance the local telecommunications infrastructure, develop human resources, and nurture digital talent in the region.

Partnership with Indosat Ooredoo Hutchison

Following the announcement of the collaboration, Indosat Ooredoo Hutchison did not provide a comment on the matter, while Nvidia declined to disclose further details. In the past month, Indosat revealed its preparedness to integrate Nvidia's next-generation chip architecture, Blackwell, into its infrastructure. The integration is intended to drive Indonesia into a new era of sovereign AI and technological advancement.

Significance of Nvidia's Presence in Indonesia

Nvidia's decision to expand its operations in Indonesia signifies a broader strategy to strengthen its foothold in Southeast Asia amid a surge in data demand driven by the growing digital economy. This move builds on the company's increasing engagement in the region, exemplified by its collaboration with Singtel, a prominent telecommunications provider in Singapore, to introduce artificial intelligence capabilities in data centers across Southeast Asia.

Southeast Asia as a Key Revenue Driver

The Southeast Asian market has emerged as a pivotal revenue source for Nvidia. Notably, a U.S. Securities and Exchange Commission filing from the previous year illustrated that approximately 15% or $2.7 billion of the company's revenue in the quarter ended October originated from Singapore. This positioned Singapore as the third-largest market for Nvidia, following the U.S. and Taiwan. The latest quarterly earnings report from Nvidia highlighted that data centers accounted for the majority of the company's revenue, amounting to $18.40 billion, reflecting the strong global demand for AI technology.