Singtel’s data center unit Nxera and Telekom Malaysia (TM) are partnering to develop data centers.

The two companies this week announced a partnership and plans to develop a data center in Johor, in southern Malaysia.

Though exact details including timelines weren't shared, the initial phase of the data center is planned to offer 64MW and can be scaled up to 200MW.

A view of Johor Bahru, Malaysia
More data centers are coming to Johor – Wikimedia Commons

Featuring liquid cooling, the companies said the facility will be able to host large computing and AI capabilities for cloud hyperscalers and GPU-as-a-Service providers.

Amar Huzaimi Md Deris, TM’s Group CEO, said: "Establishing a hyper-connected AI-ready data center marks the next phase in our long-standing partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination.”

TM currently operates seven data centers across Malaysia with two core facilities located in Klang Valley and Johor. It is also part of the Asia Link Cable Systems (ALC) partnership, a 7,200km, 24 Tbps cable. The cable’s landing station will be located at the TM Exchange Kuala Sedili in Johor.

Bill Chang, CEO of Nxera and Singtel's Digital InfraCo unit, added: "We are excited to enter the Malaysian market with TM as our strategic partner. In addition to data centers, we will be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity.”

Chang continued: “Our strategy of developing data center sites with close proximity to our operations in Singapore allows us to capture spill-over demand from our customers and help them scale their business with confidence.”

Singtel’s data center portfolio currently comprises 62MW of existing capacity in Singapore, while the company is building a new 58MW data center in the city-state known as DC Tuas.

The company has also partnered with Telkom and Medco Power in Indonesia as well as Gulf Energy and AIS in Thailand to develop data centers in Batam and Bangkok respectively.

The portfolio will deliver a total combined capacity of over 155MW once the three new projects are operational in 2025, with room to scale up to more than 200MW.

KKR acquired an $800 million, 20 percent stake in Singtel's data center business last year.

Reports Singtel was planning to expand into Johor surfaced last week.

Located in Malaysia’s south, Johor is just across the border from Singapore. Though Singapore is starting to ease restrictions around its ongoing moratorium on new data center developments, Johor has grown a sizeable data center market of its own as developments overspill from the city-state. Other developers and operators in Johor include PDG, AirTrunk, Equinix, Keppel, ChinData's Bridge DC, and Yondr.

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