Nvidia, the leading US chipmaker, is teaming up with Indosat Ooredoo Hutchison, a major Indonesian telecommunications player, to establish a cutting-edge $200 million artificial intelligence (AI) center in the heart of Southeast Asia's largest economy, Nikkei Asia reports.

Planned to be situated in Solo, Central Java, this pioneering AI hub is slated to be operational by the end of 2024, according to statements from Indonesia's Communications and Informatics Ministry. The collaboration between Nvidia and Indosat represents a deliberate effort to meet the region's growing demand for digital growth.

Indosat to Strengthen Indonesia's AI Sector

Deputy Minister Nezar Patria highlighted the significance of the partnership, emphasizing its strategic nature. "This collaboration is very strategic, and we hope that there will also be technology transfer so that we are not just users, but can later become part of the AI players that are taken into account both regionally and at the global level," said Patria.

Indosat, the country's second-largest mobile network operator, aims to bolster Indonesia's AI sector by enhancing technological infrastructure and nurturing local talent. With plans for a state-of-the-art center of excellence in Surakarta, Indosat is committed to pioneering AI development in Indonesia (via Reuters).

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The choice of Surakarta as the site for the AI center was deliberate, as explained by Budi Arie Setiadi, Indonesia's Communication Minister. "Why in Surakarta? Because they are ready, have good human resources and 5G infrastructure," said Setiadi.

Nvidia's expansion into Indonesia aligns with its broader footprint across Southeast Asia, with recent partnerships in Singapore and Malaysia. This move signifies the growing importance of the region in the global AI landscape.

(Photo : BAY ISMOYO/AFP via Getty Images)

JAKARTA, INDONESIA: A car motors in front of a Indosat building in Jakarta 05 December 2005. Nokia Corp said it has won an order from Indonesia's Indosat to expand its GSM network in Bali and Java with the two parties having a three year agreement, signed in June this year. 

AI's Impact on the Southeast Asian Market

The economic impact of AI in Southeast Asia is projected to be substantial, with forecasts suggesting a significant boost to the region's GDP by 2030. 

In Indonesia alone, the economic impact of AI is estimated to reach a staggering $366 billion by the end of the decade, marking nearly one-third of the total impact in the Association of Southeast Asian Nations.

Furthermore, Nikkei tells us that other conglomerates are also capitalizing on Indonesia's rapid digital transformation. Sinar Mas recently announced a joint venture with South Korea's LG CNS to enter the data center and cloud business in Indonesia, further underscoring the country's potential as a tech hub.

The establishment of the AI center in Indonesia not only reflects the growing prominence of AI in driving economic growth but also positions the country at the forefront of technological innovation in the region. 

With the deployment of Nvidia's Blackwell chip, powered by advanced Tensor Core GPU technology, Indosat is poised to propel Indonesia into a new era of sovereign AI and technological advancement, redefining the possibilities of AI cloud services in the nation.

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