Telekom Malaysia (TM) and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, have marked a significant milestone with the groundbreaking ceremony for their joint venture data centre campus in Iskandar Puteri, Johor. This state-of-the-art facility, designed to be sustainable, hyper-connected, and AI-ready, underscores Malaysia’s ambition to become a regional digital hub.
The 64MW data centre campus is a strategic investment aimed at bolstering Malaysia’s digital infrastructure and driving economic growth. By positioning Johor as a key digital hub, the project aligns with the government’s vision of transforming the nation into a centre for industrial growth, AI development, and innovation.
This collaboration between TM and Nxera marks the strengthening collaborative partnership between Malaysia and Singapore. Both Southeast Asian nations are working together to create a robust digital ecosystem. The data centre campus is expected to catalyze attracting high-tech and high-value content companies to the region, fostering a vibrant business environment.
Speaking at the groundbreaking ceremony, Malaysia’s Minister of Digital, YB Gobind Singh Deo said, “This investment by TM and Nxera reinforces Malaysia’s position as
the digital hub in Southeast Asia, further advancing the nation’s economic growth. Based on advance estimates, Malaysia’s economy expanded 5.8% in the second quarter of 2024, and such investments are in line with projections that Malaysia’s digital economy will contribute 25.5% to the nation’s GDP by the end of the year. The relationship between TM and Nxera expands to Malaysia and Singapore, with both nations being a good case study of a productive working partnership between two ASEAN member states.”
A key focus of the project is sustainability. The data centre campus will be designed to meet Leadership in Energy and Environmental Design (LEED) standards, incorporating energy and water-efficient solutions. Additionally, the use of liquid cooling technology will enable the facility to handle high-power density AI workloads efficiently.
To support the growing demand for digital connectivity, the joint venture plans to expand submarine cable connectivity, further strengthening Malaysia’s position as a regional digital hub. The strategic location of the data centre campus, just 16 kilometres from Singapore, will facilitate seamless cross-border data transfer and collaboration.
Beyond infrastructure development, TM and Nxera are committed to nurturing local talent. The partnership aims to create employment opportunities within the data centre industry and foster collaboration between universities in Singapore and Malaysia to develop specialized data centre curriculums. This investment in human capital will contribute to Malaysia’s long-term digital transformation goals.
The data centre campus is scheduled to commence commercial operations in 2026. With its focus on sustainability, AI readiness, and connectivity, this project is set to become a cornerstone of Malaysia’s digital infrastructure and a catalyst for economic growth.
However, it’s worth noting that TM’s shareholders have yet to approve the joint venture. In a statement via Bursa Malaysia, the shareholders will be voting on the matter in an upcoming extraordinary general meeting (EGM).