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In the zone: Data centre development of telcos to benefit

Samantha Chiew
Samantha Chiew • 4 min read
In the zone: Data centre development of telcos to benefit
Will we see a data centre boom in Johor? Photo: Bloomberg
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After Singapore imposed a moratorium on new data centres from 2019 to 2022, some operators moved their operations to Johor. Singapore Telecommunications (SGX:Z74) (Singtel) is also expanding into Malaysia, with plans to establish a presence there. On June 15, Telekom Malaysia (TM) and Singtel’s Digital InfraCo unit announced a joint venture (JV) to develop data centres in Malaysia. Their first project will be a sustainable, hyper-connected, AI-ready data centre campus in Johor.

The TM-Singtel partnership is designed to meet the needs of hyperscalers, next-gen AI application providers and enterprises that are accelerating their digitalisation and cloud computing efforts in the region. This JV leverages TM’s extensive subsea cable networks and Singtel’s Digital InfraCo to offer global connectivity with lower latency and improved reliability.

Located in Iskandar Puteri, just 16km from Singapore, the data centre campus will be the largest ever for TM and Singtel’s subsidiary Nxera. It will adhere to the latest reliability, security and sustainability standards and provide top-notch local and international connectivity. Its proximity to subsea cable links between Singapore and Malaysia positions it perfectly to meet the growing demand driven by digitalisation and development initiatives in both countries.

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