ASEAN telcos collaborate on next-gen Malaysian data centre

Tuesday, 25 June, 2024

ASEAN telcos collaborate on next-gen Malaysian data centre

Malaysia’s national telco and provider of digital infrastructure Telekom Malaysia Berhad (TM) is partnering with Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, to develop data centres in Malaysia. This strategic partnership aims to serve the needs of hyperscalers, next-generation AI application providers, and enterprises pursuing accelerated digitalisation and cloud in the region.

The companies’ first project is a sustainable, hyper-connected, AI-ready data centre campus in Johor. Located in Iskandar Puteri, just 16 km from Singapore, the campus will be the largest to date for both TM and Nxera. It will utilise the subsea cable networks of TM and Singtel’s Digital InfraCo, which provide global connectivity and enhanced network performance.

“Establishing a hyper-connected AI-ready data centre marks the next phase in our longstanding partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination,” said Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer.

“TM brings the largest domestic network infrastructure, extensive international subsea cable systems and the largest interconnected DC in Malaysia, a solid backbone for this project. This will serve as a catalyst for high-performance computing and lay a solid foundation for the future advancement of cloud and AI applications.”

Huzaimi Md Deris said the collaboration of two main telcos in the region was unique and would have a positive impact on the development of the digital ecosystem, not only benefiting the businesses but also nurturing future talent. “Through this partnership, TM continues to demonstrate its dedication to delivering innovative and sustainable solutions, marking a pivotal step in our aspiration to becoming a digital powerhouse by 2030,” he said.

Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit, said it was exciting to enter the Malaysian market with TM as strategic partner. “This collaboration advances our vision to be the region’s leading sustainable, hyperconnected, AI-ready data centre platform, supporting businesses with the digital infrastructure needed for the growing demand for cloud, digitalisation and AI,” he said.

“The development of this first data centre campus in Johor, which can be expanded in phases, demonstrates our ability to scale quickly in markets that are important to our customers. With our joint industry expertise and strong track record, we will build and operate one of the most efficient, sustainable and connectivity-rich data centres in Malaysia.”

Chang said that in addition to data centres, the companies would be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity. “Our joint venture will also partner institutes of higher learning in Malaysia to nurture talent for our projects and the industry,” he said.

TM currently operates seven data centres across Malaysia. Its entry into the Asia Link Cable Systems (ALC) partnership will facilitate the laying of a submarine cable system spanning approximately 7200 km, with an initial design capacity of 24 terabits per second.

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