Nvidia Plans to Establish $200 Million AI Data Center in Indonesia

Nvidia, one of the top fabless semiconductor companies in the world, has announced plans to establish a USD 200 million artificial intelligence (AI) data center facility in Indonesia. The AI data center, which is expected to commence construction this year, will be located in the city of Surakarta in Central Java. Nvidia is forming a joint venture with Indosat Ooredoo Hutchison, a major Indonesian telecommunications firm, for this project. The partnership aims to build the center's infrastructure and develop the necessary human resources.

This move is part of Nvidia's broader push to develop data centers in Southeast Asia, a region experiencing a boom in data demand due to the rapidly growing digital economy. According to Indonesia’s Communication and Information Technology Minister, Budi Arie Setiadi, the new facility will bolster local telecommunications infrastructure, human resources, and digital talent. 

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The center could consist of a telecommunications infrastructure or a human resources center. Last month, Indosat announced that it was ready to integrate Nvidia’s next-generation chip architecture, Blackwell, into its infrastructure. This integration aims to propel Indonesia into a new era of sovereign AI and technological advancement.

Indosat Ooredoo Hutchison is Indonesia’s second-largest mobile telco after a 2022 merger between Qatar’s Ooredoo and Hong Kong’s CK Hutchison. In January, Singapore telco provider Singtel announced its partnership with Nvidia to deploy artificial intelligence capabilities in its data centers across Southeast Asia. This initiative would provide businesses in the region with access to Nvidia’s cutting-edge AI computing power without the need for clients to invest in and manage their expensive data center infrastructure.
 

Southeast Asia has proved to be a major revenue driver for Nvidia. A U.S. Securities and Exchange Commission filing last year showed that about 15%, or USD 2.7 billion, of the company’s revenue for the quarter that ended October came from Singapore. This represented a 404.1% increase from the USD 562 million recorded in the same period the previous year.

Objectives of the Project

Strengthening Presence in Southeast Asia

Nvidia's investment in Indonesia is part of its broader push into Southeast Asia, a region experiencing a boom in data demand due to the rapidly growing digital economy. By establishing a state-of-the-art AI center in Indonesia, Nvidia aims to strengthen its presence and influence in this burgeoning data center market.

Promoting Technological Advancement

The AI center is expected to propel Indonesia into a new era of sovereign AI and technological advancement. By integrating Nvidia’s next-generation chip architecture, Blackwell, into its infrastructure, the center will be at the forefront of AI technology.

Developing Local Telecommunications Infrastructure

The AI center will bolster local telecommunications infrastructure. This is particularly significant given Nvidia's partnership with Indosat Ooredoo Hutchison, a major Indonesian telecommunications firm. The partnership aims to build the center's infrastructure, thereby enhancing the country's telecommunications capabilities.

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