According to reports, Telekom Malaysia (TM) has reached an agreement with Nxera, the regional data center arm of Singapore Telecommunications (Singtel), to collaborate on developing data centers in Malaysia. The first one will be established in Johor, featuring a sustainable, highly interconnected, and AI-ready data center campus.

According to the joint statement, the collaboration is designed to meet the needs of hyperscale cloud service providers, next-generation AI application providers, and enterprises seeking to accelerate digitalization and cloud computing in ASEAN.

Located in Iskandar Puteri, 16 kilometers from Singapore, the campus will be TM and Nxera's largest to date, providing 64 megawatts of power capacity in the initial stage, expandable to 200 megawatts based on market demand. Leveraging extensive submarine cable networks between Singapore and Malaysia, the project promises low latency, higher reliability, and stronger global connectivity performance.

The campus is slated to achieve LEED (Leadership in Energy and Environmental Design) certification as a green facility, reflecting TM's commitment to energy efficiency and sustainability practices. Additionally, it will have access to Singtel's Paragon cloud orchestration platform and GPU-as-a-Service (GPUaaS) to meet large-scale AI computing demands. Advanced technologies like liquid cooling will support high-power-density workloads and operations efficiently.

TM currently operates seven data centers in Malaysia, including two core facilities located in the Klang Valley and Johor.

In addition to Nxera's existing 62 megawatts capacity in Singapore, the company is developing three more new AI-ready data centers in this region, including a new 58 megawatts facility at Choa Chu Kang in Singapore, and facilities in collaboration with Indonesia's Telkom and Medco Power, as well as Thailand's AIS and Gulf Energy.

Expected to be operational by 2025, these three new projects will collectively offer over 155 megawatts of capacity, expandable to over 200 megawatts.

Amar Huzaimi Md Deris, CEO of TM, expressed that this collaboration marks a new phase in TM and Singtel's partnership, leveraging TM's extensive domestic network infrastructure, international submarine cable systems, and Malaysia's largest interconnection data center to position ASEAN as a leading global digital hub.

Meanwhile, TM highlighted its capability to provide tailored wholesale data, connectivity, data center, and platform solutions for local and international needs, including cloud services through its Alpha Edge sovereign cloud solution.

"The uniqueness of this collaboration lies in not only supporting major enterprises but also partnering with Malaysian higher education institutions to cultivate industry-ready professionals, advancing our goal to become a digital powerhouse by 2030," added Amar Huzaimi Md Deris.

Bill Chang, CEO of Nxera and Singtel's digital infrastructure unit, believes the partnership with TM demonstrates their ability to rapidly expand in key markets. The chosen site near Nxera's Singapore operational center is strategically positioned to capture overflow demand from clients, facilitating business expansion.

Chang also revealed Nxera's plans to expand submarine cable routes between Singapore and Johor in collaboration with TM, enhancing digital connectivity.

In conclusion, this project underscores Southeast Asia's forward-looking initiatives in digitalization and AI capabilities. Through cutting-edge and sustainable data center facilities, TM and Nxera aim to play a crucial role in the region's digital transformation and ecosystem development.