Singapore Telecommunications (Singtel) has joined forces with Nvidia Corp (NASDAQ: NVDA) to integrate artificial intelligence (AI) capabilities into its data centers across Southeast Asia. This collaboration allows Singtel to provide clients with access to Nvidia’s graphics processing units (GPUs) through its regional data centers. This strategic move enables clients to leverage AI technology for digital services without the burden of owning and managing costly processors.
The partnership responds to the surging demand for Nvidia chips, crucial for handling data-intensive workloads. This demand has led to global price increases amid a shortage, as reported by Nikkei Asia. While facing challenges due to semiconductor technology sanctions in its key market, China, Nvidia remains focused on expanding its global footprint.
In pursuit of securing High Bandwidth Memory (HBM), Nvidia is currently in discussions with SK Hynix and has enlisted Samsung Electronics Co, Ltd (OTC: SSNLF) as a supplier for HBM. Industry analysts foresee a substantial $1 trillion opportunity for Nvidia in the AI sector, driven by significant investments from major tech companies.
Singtel’s decision to incorporate AI-ready capabilities into its data centers aligns with its broader strategy to position itself as a key driver of growth in Southeast Asia’s burgeoning digital economy. As part of its commitment to sustainability, Singtel aims to achieve operational net-zero emissions for its energy-intensive facilities by 2028, achieved through collaborations with renewable energy companies.
Singtel is concurrently expanding its data center presence in various Southeast Asian countries, including Thailand and Indonesia’s Batam Island. The company also has plans to enter markets in Japan and other Asia-Pacific regions. This initiative follows a corporate reshuffle in the previous year and a 20% stake acquisition by KKR in Singtel’s regional data center business, providing funds for further expansion.
As of the latest update, Nvidia’s shares traded lower by 2.07% at $614.81. The collaboration between Singtel and Nvidia underscores the growing importance of AI capabilities in the rapidly evolving digital landscape of Southeast Asia.