TM Nxera, a joint venture between Telekom Malaysia (TM) and Singtel’s regional data center arm Nxera, has secured a landmark multi-year electricity supply agreement with Tenaga Nasional (TNB) for 280MW of power.
This substantial energy allocation will fuel the development of a state-of-the-art, AI-ready green data center campus in Iskandar Puteri, Johor, positioning Malaysia as a key player in Southeast Asia’s digital infrastructure landscape.
Driving Malaysia’s Digital Economy with Sustainable Innovation
The data center, designed as a Tier 3 cloud-enabled facility, is set to begin its first phase of operations in 2026, with a scalable capacity exceeding 200MW to support large-scale AI workloads and hyperscalers.
Historically, Johor has been a growing hub for industrial and technological investments, and this project builds on the region’s momentum, following the groundbreaking ceremony in mid-2024 that marked the start of this hyperscale campus.
The initiative aligns with Malaysia’s broader ambition to become a regional leader in digital transformation, leveraging partnerships like TM Nxera to attract global tech investments.
Impact on Local and Regional Technology Ecosystems
The secured power supply is a critical step in ensuring reliable and sustainable energy, a cornerstone for powering Malaysia’s digital economy and AI ambitions, as stated by TM Nxera CEO Mahathir bin Said.
This campus is expected to catalyze industrial growth by creating a thriving ecosystem for advanced technology adoption, potentially generating jobs and fostering innovation in Johor.
Moreover, with features like liquid-cooling technologies and energy-efficient systems, the project underscores a commitment to sustainability, earning potential LEED certification and setting a benchmark for green data centers in the region.
Future Prospects for AI and Cloud Computing in Malaysia
Looking ahead, the TM Nxera data center is poised to support the rising demand for cloud computing and AI-driven solutions, positioning Johor as a hyperscale power hub in Southeast Asia.
The facility’s connectivity, bolstered by TM and Singtel’s expertise, will likely draw international hyperscalers and GPU-as-a-Service providers, enhancing Malaysia’s global tech standing.
As the Malaysia data center market continues to surge—recent reports suggest it has surpassed USD 11.4 billion—projects like this are expected to play a pivotal role in meeting the region’s growing colocation and AI infrastructure needs.
Andrew Lee
