Singtel Collaborates with Nvidia on AI Data Center Expansion in ASEAN
Singtel has partnered with Nvidia to enhance its AI data center offerings in Southeast Asia, responding to the booming demand for data services in the digital economy.
This collaboration allows clients to utilize Nvidia's powerful GPUs in Singtel's data centers, enabling AI technology adoption without the cost of owning the hardware.
The venture addresses the increasing need for Nvidia’s chips, essential for processing large workloads, especially as a global chip shortage drives up prices. Countries like Singapore and Malaysia are escalating AI data center development, but these are relatively nascent.
With the introduction of its data center brand Nxera, Singtel aims for net-zero operational emissions by 2028 through partnerships with renewable energy providers across the region.
Owned principally by Temasek Holdings, Singtel is leveraging this data center strategy to capitalize on Southeast Asia's rapidly growing market, which could significantly boost the region’s GDP by 2030.
Bill Chang, CEO of Singtel’s Digital InfraCo, highlighted the scarcity of data centers equipped to efficiently manage AI workloads, underlining Singtel's commitment to meeting this rising need.
By 2025, Singtel is set to open a 58-megawatt facility in Singapore, featuring cutting-edge liquid cooling for AI processing. Additional projects are underway in Thailand and Indonesia’s Batam Island, with plans to expand capacity, explore opportunities in Malaysia, Vietnam, and potentially Japan.
These expansions follow Singtel's recent restructuring aimed at enhancing productivity, which included the creation of Digital InfraCo to oversee its data center and connectivity businesses.
This was bolstered by a $820 million investment from KKR, valuing Singtel's data center business at SG$5.5 billion, with the capital aimed at further growth in the digital infrastructure across the region.