Telekom Malaysia (TM) and Nxera, the regional data centre arm of Singtel's Digital InfraCo unit, have commenced construction on their new data centre campus in Iskandar Puteri, Johor in Malaysia. The companies last week held a groundbreaking ceremony for their data center campus. This development follows one month after the announcement of a joint venture to develop data centres in Malaysia aimed at boosting Johor's status as a digital hub.

Significance of the Data Centre Campus

In a joint statement, Singtel said this 64 MW, sustainable, hyper-connected, AI-ready data centre will enhance Malaysia's digital infrastructure, supporting government initiatives to drive the digital economy and transform the countrya hub for industrial growth, AI development, and innovation.

TM Group 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."

Planned Features and Operational Goals

"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," said the CEO of Nxera and Singtel's Digital InfraCo unit.

Scheduled to begin commercial operations in 2026, the Tier 3 data centre will feature liquid cooling for high-density AI workloads and will meet Leadership in Energy and Environmental Design (LEED) standards for energy and water efficiency. The joint venture also plans to expand submarine cable connectivity to support the new facility.

Collaborations and Industry Development

Located 16 km from Singapore, the data centre will enable seamless infrastructure expansion for regional customers and can scale up to 200 MW based on market demand.

The joint venture will also foster collaborations between universities in Singapore and Malaysia to develop specialised courses for the data centre industry, the official release said. This joint venture is pending approval from TM shareholders in the upcoming EGM.