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On April 5th, Caixin News Agency reported that as the wave of artificial intelligence continues to sweep across the world, Nvidia, the leader of the AI wave, is continuing to march towards Southeast Asia.
On Thursday local time, Indonesian officials revealed that Nvidia plans to collaborate with Indonesian telecommunications giant Indosat Ooredoo Hutchison to spend $200 million to establish an artificial intelligence center in Indonesia.
Nvidia is preparing to continue its march towards Southeast Asia
According to Budi Arie Setiadi, Minister of Communications and Information Technology of Indonesia, the new facility will be located in Surakarta, Central Java Province, and will strengthen local telecommunications infrastructure, human resources, and digital talent.
Indosat Ooredoo Hutchison is the second largest mobile telecommunications company in Indonesia. Last month, the company announced plans to integrate Nvidia's next-generation chip architecture Blackwell into its infrastructure, with the goal of promoting Indonesia into a new era of artificial intelligence and technological progress.
Nvidia's expansion of its business in Indonesia represents the company's broader expansion into Southeast Asia this year. Against the backdrop of continuous growth in the digital economy, there has been a surge in data demand in the region.
In January of this year, Singapore Telecom announced a partnership with Nvidia to deploy artificial intelligence capabilities in its data centers throughout Southeast Asia.
Singapore Telecom announced in March that the plan will provide Nvidia's cutting-edge artificial intelligence computing capabilities to businesses in the region before this year, without customers having to invest and manage their expensive data center infrastructure.
Southeast Asia has become an important market for Nvidia
Southeast Asia has been proven to be one of Nvidia's main sources of revenue.
According to documents submitted by Nvidia to the US Securities and Exchange Commission (SEC) last year, approximately 15% (or $2.7 billion) of the company's quarterly revenue for the quarter ending in October came from Singapore.
Although this proportion still lags behind the United States and China - the United States accounts for 34.77% of Nvidia's revenue, Taiwan, China accounts for 23.91%, and Chinese Mainland accounts for 22.24%, Singapore is indeed a fast growing market for Nvidia: in this quarter, Nvidia's revenue in Singapore increased by 404.1% over the same period last year's $562 million, surpassing Nvidia's overall revenue growth rate and becoming the company's fourth major market.
According to Nvidia's latest financial report, data centers account for the majority of its revenue. Supported by the global artificial intelligence boom, data centers generated $18.4 billion in revenue in their latest fiscal quarter.
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