NVIDIA Expands In Southeast Asia With $200M Investment In Indonesia's AI Center

U.S. tech giant NVIDIA Corp NVDA has announced plans to build a $200 million artificial intelligence (AI) center in Indonesia, marking a significant step in its Southeast Asia expansion strategy.

What Happened: Nvidia is partnering with Indosat Ooredoo Hutchison, a local telecommunications leader, on the project. The AI center, which will be located in Surakarta, Central Java province, is expected to enhance local telecommunications infrastructure and nurture digital talent, according to Indonesia’s Communication and Information Technology Minister, Budi Arie Setiadi, reported CNBC on Friday.

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Indosat Ooredoo Hutchison, Indonesia’s second-largest mobile telco, has shown readiness to incorporate Nvidia’s latest chip architecture, Blackwell, into its infrastructure.

This move is part of Nvidia’s broader push into Southeast Asia, motivated by the region’s surging data demand and burgeoning digital economy. Earlier this year, Nvidia collaborated with Singapore’s telco provider Singtel to implement AI capabilities in its data centers across Southeast Asia.

Why It Matters: Nvidia’s expansion into Southeast Asia comes at a critical time. SK Hynix’s $3.87 billion investment in a U.S. chip packaging facility indicates a global focus on chip production.

However, a recent earthquake in Taiwan has raised concerns about the future of AI, given its dependence on chip production.

Meanwhile, geopolitical tensions between the U.S. and China have led to Malaysia emerging as a significant hub for semiconductor manufacturing.

Additionally, Taiwanese chip companies have been expanding their operations in Japan, reshaping the global semiconductor industry. Amid these developments, Nvidia’s move to establish an AI center in Indonesia signifies its commitment to strengthening its presence in Southeast Asia.

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