TM and Singtel Data Centre Boosts Malaysia’s Digital Aspirations
TM (Telekom Malaysia) and Nxera, Singtel’s Digital InfraCo unit, have started construction on a 64MW data centre campus in Iskandar Puteri, Johor. This joint venture aims to bolster Malaysia’s status as a digital hub in Southeast Asia. The AI-ready facility is designed to meet Leadership in Energy and Environmental Design (LEED) standards. Furthermore, this design emphasizes sustainability and supports advanced computing needs.
The groundbreaking ceremony featured key figures including Malaysia’s Digital Minister YB Gobind Singh Deo, Johor State Investment Chairman YB Lee Ting Han, and Singapore’s Senior Minister of State Low Yen Ling. They highlighted the project’s role in advancing Malaysia’s digital economy. Experts project the digital economy to contribute 25.5% to the nation’s GDP by the end of the year. This initiative aligns with Malaysia’s digital transformation goals, aiming to attract high-tech industries and foster innovation.
Singapore Data Centre and Digital Expansions into Malaysia ongoing since 2015
However, this expansion of data centre infrastructure is not new in Malaysia. Since 2015, under the previous administration of Najib Razak, Malaysia has actively courted data centre players from Singapore to expand into the country. TM previously embarked on a $38 million project to build the Nusajaya Data Centre (NJDC) in the Johor. VADS Berhad, a TM subsidiary managed the project. It was TM’s largest purpose-built data centre. The NJDC would serve as an international digital gateway. Furthermore, it would serve as a regional hub for cloud and managed data centre services. The strategic location near the Malaysia-Singapore Second Link expressway underscores Malaysia’s intent to attract Singapore-based businesses.
Amar Huzaimi Md Deris, TM’s Group CEO, emphasized the data centre’s potential to revolutionize industries with AI and data analytics capabilities. Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo, highlighted the centre’s role in fostering economic growth through digitalisation and developing local talent. Furthermore it would enhance international connectivity.
The data centre campus is scheduled to begin operations in 2026. It will incorporate liquid cooling technology for high-density AI workloads, ensuring efficient resource use. Located 16 km from Singapore, it will offer seamless infrastructure expansion for businesses across the region. Plans to expand submarine cable connectivity aim to further strengthen the digital ecosystem in Southeast Asia.
The joint venture will also collaborate with universities in Malaysia and Singapore to develop specialized courses. This move will foster expertise in the data centre industry and support Malaysia’s growth as a regional digital leader.