Singtel's Digital InfraCo’s data centre arm Nxera, in collaboration with Telekom Malaysia (TM), has commenced construction on a new data centre campus in Iskandar Puteri in the Malaysian state of Johor. 

The ground-breaking ceremony, which took place yesterday (25 July), signals the start of a project that aims to bolster Johor's position as a domestic digital hub. 

The two companies formed a joint venture (JV), announced last month, and are set to develop data centres across Malaysia, contributing to the country's digital infrastructure.  

This 64MW data centre campus is designed to be hyperconnected, sustainable, and AI-ready, aligning with the Malaysian national government's digital economy initiatives and industrial growth ambitions. 

Malaysia Digital Minister YB 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 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 [gross domestic product] by the end of the year.” 

The data centre’s commercial launch is planned to take place in 2026. 

Singtel said the Tier 3 cloud-enabled data centre will use liquid cooling technology for efficient AI workload management.  

The campus will be Leadership in Energy and Environmental Design (LEED)-certified, reflecting a commitment to energy and water efficiency and sustainable resource use. 

To enhance the data centre's capabilities, the JV plans to extend submarine cable connectivity, fostering a robust digital ecosystem.  

Located near Singapore, the facility will support seamless regional infrastructure expansion and can scale up to 200MW based on demand. 

The project will also generate employment and invest in talent development through partnerships with universities in both Singapore and Malaysia.  

TM Group CEO Amar Huzaimi Md Deris said: “This facility exemplifies our commitment to fostering industry growth, driving innovation, and enhancing socioeconomic 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.”