Chipmaker Nvidia (NVDA) has announced plans to build a $200 million U.S. artificial intelligence (A.I.) centre in Indonesia as it expands across Asia.
According to media reports, the new facility will be based in the city of Surakarta in the Central Java province. Nvidia is partnering with local telecommunications giant Indosat Ooredoo Hutchison on the project.
Indosat has said that it is ready to integrate Nvidia’s next-generation microchip and semiconductor architecture, called “Blackwell,” into its own infrastructure.
Currently, Indosat is Indonesia’s second-largest telecommunications company.
The A.I. centre in Indonesia represents a bigger push by Nvidia into Southeast Asia as data demand in the region booms on the back of a growing digital economy.
In January, Singapore telecommunications provider Singtel announced a partnership with Nvidia to deploy A.I. capabilities at its data centres across Asia.
Southeast Asia is proving to be a major revenue driver for Nvidia. The company’s latest earnings showed that 15%, or $2.7 billion, of the company’s quarterly revenue came from Singapore.
Revenue from Singapore grew more than 400% year-over-year in the fourth quarter of 2023, outpacing Nvidia’s overall revenue growth and making it the company’s fourth largest market.
Nvidia’s three biggest markets in terms of revenue generation remain the U.S., accounting for 35% of sales, Taiwan with 24%, and China/Hong Kong at 22%.
Data centres comprise the majority of Nvidia’s revenue, generating $18.40 billion U.S. as A.I. demand skyrockets.
Nvidia’s stock has risen 220% in the last 12 months to trade at $859.05 U.S. per share.
