Three persons acquainted with the topic have stated that Nvidia (NVDA.O) is in advanced discussions with the Malaysian conglomerate YTL (YTLS.KL) for a data center agreement. The American chip giant seeks to increase its business in Southeast Asia.
According to one of the individuals, the possible partnership would involve working together on cloud infrastructure. It would most likely be based at YTL’s data center complex in Johor, which is located in southern Malaysia and borders Singapore.
An additional individual brief on the topic stated that the cooperation would provide Southeast Asian firms with access to Nvidia’s artificial intelligence processors through cloud computing.
The Chief Executive Officer of Nvidia, Jensen Huang, who was in Malaysia on Friday, declined to comment specifically on a possible business transaction.
“YTL is an extraordinary company. Malaysia is an important hub for SEA (Southeast Asia) computing infrastructure, which requires access to land, facilities, and power. YTL could play a great role in that,” he stated at a press conference with Reuters. “It would be a privilege for us to partner with YTL in any way.”
This year, YTL’s telecommunications sector agreed with Nvidia to form a collaboration in the cloud gaming industry. However, the company did not immediately react to a request for comment.
As a “growing technology hub,” Southeast Asia has become increasingly crucial for Nvidia. Huang has informed reporters that he is contemplating implementing artificial intelligence infrastructure projects in Singapore or Malaysia. This week, he stated that the corporation would “potentially announce some large investments” in Singapore within the next week.
By the end of the quarter in October, Singapore had contributed almost $2.7 billion, or 15%, of the company’s total revenues. This is a 401% increase over the same time in the previous year. Singapore is home to more than 1,100 artificial intelligence companies and several Asian offices of technology heavyweights from the United States and China.
Nvidia was working with eighty different businesses in Malaysia, according to the CEO, who spoke to the media on Friday.