TM and Singtel’s Nxera to develop next-generation data centres in Johor

By Digital News Asia June 18, 2024

Serve hyperscalers, next-generation AI application providers and enterprises
Data centre campus will be largest to date for TM, Nxera, can scale to 200MW

An aerial view of Iskandar Puteri with the city in the background. The region, 16km away from Singapore, will be the site for the hyper-connected AI-ready data centre campus for the TM-Nxera partnership.

Telekom Malaysia (TM) is partnering Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, in a joint venture to develop data centres in Malaysia starting with a sustainable, hyper-connected AI-ready data centre campus at Iskandar Puteri, Johor, just 16 km from Singapore.

The two parties explain that the strategic partnership aims to serve the needs of hyperscalers, next-generation AI application providers and enterprises pursuing accelerated digitalisation and cloud in the region. The joint venture is a unique proposition, bolstered by the extensive subsea cable networks of TM and Singtel's Digital InfraCo which provide global connectivity and enhanced network performance with lower latency and improved reliability.

TM and Singtel’s Nxera to develop next-generation data centres in Johor Amar Huzaimi Md Deris (pic), TM’s Group Chief Executive Officer, said, "Establishing a hyper- connected AI-ready data centre marks the next phase in our long-standing partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination. This collaboration has positive impact to the development of [Malaysia’s] digital ecosystem that not only benefits businesses but also in nurturing future talent. Through this partnership, TM continues to demonstrate its dedication to delivering innovative and sustainable solutions, marking a pivotal step in our aspiration to becoming a Digital Powerhouse by 2030.”

Bill Chang (pic), CEO of Nxera and Singtel's Digital InfraCo unit, said, "The development of this first data centre campus in Johor, which can be expanded in phases, demonstrates our ability to scale quickly in TM and Singtel’s Nxera to develop next-generation data centres in Johor markets that are important to our customers. In addition to data centres, we will be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity. Our joint venture will also partner institutes of higher learning in Malaysia to nurture talent for our projects and the industry. Our strategy of developing data centre sites with proximity to our operations in Singapore allow us to capture spill-over demand from our customers and help them scale their business with confidence.”

The data centre campus will be the largest to date for both TM and Nxera. The initial phase is planned for 64MW and can be scaled up to 200MW in response to market demand. It will be built to the latest standards for reliability, security and sustainability while offering the best local and international connectivity. With its proximity to subsea cable links between Singapore and Malaysia, the data centre will be well-placed to support the increasing demand from both countries’ digitalisation and development initiatives.

This high-power density campus will be able to host large computing and AI capabilities such as requirements by cloud hyperscalers, GPU-as-a-Service providers and features advanced technologies such as liquid cooling to support high-power density workloads and operations efficiently. The data centre will be a LEED-certified (Leadership in Energy and Environmental Design) green building, emphasising its commitment to greater energy efficiency and sustainable practices.

TM will contribute its expertise in the region’s network infrastructure deployment to deliver customised range of wholesale data, connectivity, data centre and platform solutions catering to both local and international needs. Additionally, TM also provides Cloud services via its sovereign Cloud Alpha Edge solution.

Seashore at Kuala Sedili, Johor where TM has an international Cable Landing Station which forms part of its infrastructure enhancements to accelerate the growth of the data centre industry in the state.

TM currently operates seven data centres across Malaysia with 2 core data centres located in Klang Valley and Johor. Its entry into the Asia Link Cable Systems (ALC) partnership facilitates the laying of a submarine cable system spanning approximately 7,200km, with an initial design capacity of 24 Terabits/sec. Coupled with the establishment of an international Cable Landing Station at TM Exchange Kuala Sedili, Johor, these serve as vital infrastructure enhancements to accelerate the growth of the data centre industry in the state.

Nxera is a rapidly growing regional platform backed by Singtel and leading global investment firm KKR, leveraging its data centre operations in Singapore to expand overseas. Customers can also tap into a host of services such as Singtel’s Paragon cloud orchestration platform and upcoming GPU-as-a-Service. They will be able to orchestrate their AI workloads in a multi- network and multi-cloud environment, serving as a catalyst for greater innovation, entrepreneurship and business excellence.

Nxera is developing three new AI-ready data centres in the region in addition to 62MW of existing capacity in Singapore. This includes a new 58MW data centre in Tuas, Singapore and data centres with partners in Indonesia and Thailand which will take its total pipeline capacity to more than 200MW in the region in the next three years. The data centres will be served by Digital InfraCo's comprehensive network of subsea fibre-optic cables.