The Malaysian data centre landscape is experiencing a surge in growth, with major players like Google, Alibaba Cloud, Amazon Web Services (AWS), and Microsoft all announcing significant investments. TM, Malaysia’s national telecommunications company, is continuing the surge with a partnership with Singtel’s regional data centre arm, Nxera, to form a joint venture focused on developing next-generation data centres in the country.
This strategic partnership looks to address the evolving needs of hyperscalers, companies specializing in AI applications, and businesses accelerating their digital transformation journeys. The collaboration leverages the strengths of both companies: TM brings its extensive domestic network infrastructure and international subsea cable systems, while Nxera contributes its expertise in developing and operating hyperconnected, AI-ready data centres.
A Catalyst for Innovation and Growth
The joint venture’s initial project involves building a hyperconnected AI-ready data centre campus in Johor, strategically located just 16km from Singapore. Planned for a capacity of 64 megawatts (MW), with the ability to scale up to 200MW, this high-power density facility will cater to demanding workloads such as those required by cloud hyperscalers and GPU-as-a-Service providers.
The data centre will be built to meet the latest standards for reliability, security, and sustainability, with features like LEED certification ensuring energy efficiency. Additionally, its proximity to subsea cable links between Singapore and Malaysia positions it to support the digitalization efforts of both countries.
“TM continues to demonstrate its dedication to delivering innovative and
sustainable solutions, marking a pivotal step in our aspiration to become a Digital
Powerhouse by 2030,” said Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer. “This will serve as a catalyst for high-performance computing and lay a solid
foundation for the future advancement of cloud and AI applications. This collaboration of two main telcos in the region is unique and has a positive impact on the development of a digital ecosystem that not only benefits the businesses but also nurtures future talent.”
Nxera’s Regional Expansion
Nxera, backed by Singtel and global investment firm KKR, views this partnership as a key step in its regional expansion plans. The company currently operates 62MW of data centre capacity in Singapore and is developing three additional AI-ready facilities in the region, including a new 58MW data centre in Tuas, Singapore. This partnership allows Nxera to leverage TM’s infrastructure and expertise to establish a strong presence in the growing Malaysian market.
“We are excited to enter the Malaysian market with TM as our strategic partner,” said Bill Chang, CEO of Nxera. “This collaboration advances our vision to be the region’s leading sustainable, hyperconnected AI-ready data centre platform, supporting businesses with the digital infrastructure they need for cloud, digitalization, and AI.”
A Sustainable Future for Data Centers
The TM-Nxera partnership highlights the growing importance of data centres in supporting Malaysia’s digital economy. This collaboration, along with investments from other major players, positions Malaysia as a key data centre hub in Southeast Asia. By focusing on sustainability and cutting-edge technologies, these data centres will play a crucial role in enabling businesses to thrive in the digital age.