TM, Singtel’s Nxera break ground for sustainable, hyper-connected data centre campus in Johor

• Aims to support the government's drive to transform M'sia into digital industrial hub
• JV will build data centre talent via collaborations between universities in S'pore & M'sia

TM and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, held a groundbreaking ceremony for their data centre campus in Iskandar Puteri, Johor. This comes one month after the announcement of a joint venture to develop data centres in Malaysia and uplift Johor’s digital hub status.

This 64MW state-of-the-art, sustainable, hyper-connected, AI-ready data centre campus reinforces Malaysia’s high-quality digital infrastructure. It also supports the government's efforts to drive the digital economy and transform the country into a hub for industrial growth, AI development, and innovation.

Malaysia's Digital minister, 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 by 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.”

He added that the relationship between TM and Nxera extends to Malaysia and Singapore, with both nations serving as a productive working partnership between two ASEAN member states.

Onn Hafiz Ghazi, menteri besar of Johor, said, “TM-Nxera’s upcoming data centre campus, located in Iskandar Puteri, holds particular significance as one of the Johor-Singapore Special Economic Zone’s first investment projects. We welcome the comprehensive scope of their investment with respect to high-quality infrastructure, sustainability, as well as employment and skilling opportunities which supports our emphasis on talent development, green technology, and renewable energy.”

“This data centre campus will serve as a catalyst for economic growth and enable businesses to harness the power of cloud computing and AI. We hope this will set the stage to shape a vibrant business ecosystem where more high-tech and high-value content companies will be attracted to locate their operations within the special economic zone and give a further boost to Johor’s digital economy,” he added.

Meanwhile, senior minister of State, Low Yen Ling, said, “Data centres are important enablers of our digital economy, powering our economy’s data-driven needs. As technology advances, robust, next-generation digital infrastructure like the TM-Nxera Data Centre will be essential to support AI advancements and foster value creation. Today’s groundbreaking marks a milestone in the deepening economic relations between Singapore and Malaysia, and I look forward to the outcomes we can achieve through close collaboration.”

Amar Huzaimi Md Deris, TM’s Group CEO, said, “Today marks a pivotal milestone in our journey to becoming a digital powerhouse as we break ground on this cutting-edge AI-ready data centre. This facility exemplifies our commitment to fostering industry growth, driving innovation, and enhancing socio-economic development. With support from the Federal Government, and Johor state agencies and authorities, we are confident that this AI-ready data centre will equip businesses with unparalleled computing power, AI capabilities, and other cutting-edge technologies. We are excited to lead the way into a future where AI and data analytics drive transformative solutions, revolutionising industries and enriching both our nation and the world.”

Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit, said, “As one of the largest investments in the Johor-Singapore Special Economic Zone, this state-of-the-art data centre campus is an integral part of our mission to empower digital economies and communities in the region while ensuring energy and water resources are deployed responsibly and efficiently. It expands our regional data centre platform’s strategic presence in this fast-growing Asia region.”

“With Malaysia embracing AI to drive competitiveness and innovation, our campus will spur economic growth by helping companies leverage AI and cloud computing to drive efficiencies and accelerate their business transformation. Our investment isn’t just about the campus; it is about bringing benefits to the local economy through digitalisation, developing local talent, creating employment opportunities, and enhancing international connectivity,” he added.

Scheduled to begin commercial operations in 2026, this cloud-enabled Tier 3 data centre campus will use liquid cooling to handle higher power density AI workloads. The facility will be designed, built, and certified to Leadership in Energy and Environmental Design standards, incorporating energy and water-efficient solutions to optimise the use of resources. This underscores the joint venture's commitment to long-term sustainability goals. To support the new data centre campus, the joint venture plans to expand submarine cable connectivity, enabling a thriving and vibrant digital ecosystem.

Located just 16 km from Singapore, the data centre campus will allow customers to seamlessly expand their infrastructure from the city-state and the rest of the region. Further, the data centre can be scaled up to 200MW in response to market demand.

In addition to the creation of new employment opportunities that are important for nation-building, the joint venture will invest in building talent for the data centre industry by fostering collaborations between universities in Singapore and Malaysia. It aims to design comprehensive courses with specialised curricula to provide students with well-rounded knowledge and the requisite skills to propel Malaysia’s growth aspirations. For communities and the region, this means superior country-to-country connectivity and a smarter, more resilient digital economy.

As announced in Bursa, this joint venture is conditional upon receiving approval from TM shareholders in the upcoming EGM.