Telekom Malaysia (TM), a Malaysia-based telecommunications firm, and Nxera, the regional data center arm of Singtel’s Digital InfraCo unit, have launched their data center campus in Iskandar Puteri, Johor of Malaysia.
The duo said in a statement on Thursday that they held a groundbreaking ceremony for the data center one month after the announcement for a joint venture to develop data centers in Malaysia and uplift Johor’s digital hub status.
Scheduled to begin commercial operations in 2026, this cloud-enabled Tier 3 data center 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 (LEED) standards, incorporating energy and water-efficient solutions to optimize the use of resources.
This underscores the joint venture’s commitment to long-term sustainability goals. To support the new data center 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 center campus will allow customers to seamlessly expand their infrastructure from the city state and the rest of the region.
Further, the data center can be scaled up to 200 megawatt (MW) in response to market demand.
In addition, apart from creation of new employment opportunities that is important for nation building, the joint venture will invest in building talent for the data center industry by fostering collaborations between universities in Singapore and Malaysia.
It aims to design comprehensive courses with specialized curriculum to provide students with well-rounded knowledge and the requisite skills to propel Malaysia’s growth aspirations.
According to the statement, this 64MW state-of-the-art, sustainable, hyper-connected, artificial intelligence (AI)-ready data center campus reinforces Malaysia’s high quality digital infrastructure.
It also supports the Malaysian government’s efforts to drive the digital economy and transform the country into a hub for industrial growth, AI development and innovation.
Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer, said this facility exemplifies the firm’s 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 center will equip businesses with unparalleled computing power, AI capabilities, and other cutting-edge technologies,” he added.
Bill Chang, Chief Executive Officer of Nxera and Singtel’s Digital InfraCo unit, said that a one of the largest investments in the Johor-Singapore Special Economic Zone, this state-of-the-art data center 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.
He said it expands the firm’s regional data center 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 AIs and cloud computing to drive efficiencies and accelerate their business transformation,” he added.
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.
According to him, such investments are in line with projections that Malaysia’s digital economy will contribute 25.5 percent to the nation’s gross domestic product (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,” he added.
Onn Hafiz Ghazi, Menteri Besar of Johor, said TM-Nxera’s upcoming data center campus, located right here in Iskandar Puteri, holds particular significance as one of the Johor-Singapore Special Economic Zone’s first investment projects.
“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.
Singapore’s Senior Minister of State for Trade and Industry and Culture, Community and Youth Low Yen Ling said data centers are important enablers of our digital economy, powering their 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,” she added.
Iskandar Investment Berhad partners TM-Nxera to drive digital transformation in Iskandar Puteri