Nvidia third-quarter revenue from Singapore grows by over 400% year-on-year

When Nvidia announced their impressive third-quarter results last week, it became evident that a significant chunk of their revenue came from a seemingly unlikely source – Singapore. According to a filing with the U.S. Securities and Exchange Commission, Singapore accounted for about 15% or $2.7 billion of Nvidia’s revenue for the quarter ended October, marking a whopping 404.1% increase from the previous year. This placed Singapore right behind the U.S., Taiwan, and China including Hong Kong in terms of Nvidia’s third-quarter sales rankings.

Reasons behind the Revenue Surge
Commenting on the phenomenon, Maybank Securities analyst Jarick Seet suggested that the surge in sales could be due to data centers and cloud services, of which Singapore had a considerable amount. This claim was supported by Sang Shin, a former executive at Temasek Holdings and GIC, who emphasized that Singapore possesses stable conditions, a strong digital infrastructure, a conducive government policy, and an abundance of digital talents.

The SEC filing also unveiled that 80% of Nvidia’s third-quarter sales came from the data center segment. Cloud service providers were the driving force behind roughly half of data center revenue while consumer internet companies and enterprises comprised approximately the other half. As a result of the unprecedented surge in revenue, there have been several proposed data center projects.

Singapore’s Booming Data Center Industry
Singapore had lifted a moratorium in 2022, which had previously paused the release of land for data center use and sought to moderate their growth. Despite the existence of over 70 operational data centers in Singapore, the surging demand has made way for new proposals in the country, such as the ones from Equinix, Microsoft, and GDS. As a result, a report by Cushman and Wakefield ranked Singapore third globally and first in Asia Pacific in terms of data center market rankings.

Future Outlook
The demand for data centers in Singapore is expected to remain high due to various factors such as the rapid growth of digital apps, e-commerce, the Internet of Things, artificial intelligence, crypto-trading, blockchain activities, and online gaming. Additionally, the shift to hybrid working and business digitalization has contributed to the increased demand for data center space.