American multinational technology corporation Nvidia, has unveiled plans to establish a $200 million Artificial Intelligence (AI) Center in Indonesia.
The AI-focused tech company’s presence in Indonesia, signals a broader push into Southeast Asia, driven by the increasing demand for data, fueled by the region’s expanding digital economy.
According to Indonesia’s communication minister Budi Arie Setiadi, he disclosed that Nvidia will partner with telecommunications firm Indosat Ooredoo Hutchison for the project, which is expected to bolster local telecommunications infrastructure and digital talent.
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Last month, Indosat announced it was ready to integrate Nvidia’s Blackwell GPU architecture into its infrastructure to propel Indonesia into a brand-new era of sovereign artificial intelligence (AI) and technological advancement.
Vikram Sinha, President Director and Chief Executive Officer of Indosat Ooredoo Hutchison, stated that the integration of Nvidia Blackwell products into its infrastructure underscores the company’s commitment to technological advancement and national sovereignty.
With Nvidia’s latest plan to establish a $200 million AI Center in Indonesia, the tech giant has continued to deepen its presence in SouthEast Asia with strategic partnerships, signaling a significant investment in the region’s burgeoning tech landscape.
In February 2024, Singtel a Singapore Telecommunications company, collaborated with NVIDIA to deploy artificial intelligence capabilities in its data centers across Southeast Asia.
Singtel disclosed that the initiative would provide businesses in the region with access to Nvidia’s cutting-edge AI computing power this year, without the need for clients to invest in and manage their own expensive data center infrastructure.
Notably, Southeast Asia has proven to be a major revenue driver for Nvidia. A U.S. Securities and Exchange Commission filing last year showed that about 15% or $2.7 billion of the company’s revenue for the quarter ended October came from Singapore.
In 2023, a report revealed that Singapore accounted for a whopping 15% ($ 2.7 billion) of Nvidia’s revenue for the third quarter (Q3) of 2023, which ended in October. Revenue from the island country in SouthEast Asia, in the third quarter, soared by 404%, from the $562 million in revenue recorded in the same period a year ago.
Singapore trailed behind the United States (34.77%), Taiwan (23.91%), and China (22.24%) in Nvidia’s third-quarter sales rankings.
In Southeast Asia specifically, spending on AI solutions is predicted to increase from US$174 million in 2022 to US$646 million in 2026. The market for this tech is projected to have an annual growth rate of 40.8% from 2021 to 2026.
The adoption of AI platforms in the region is primarily driven by the need to improve employee productivity, accelerate new product introductions, and enhance risk management capabilities.