Singtel's Nxera and Malaysia's TM partner for data centre development

It will be built in Johor, Malaysia.

Nxera MY Pte. Ltd, a subsidiary of Singapore Telecommunications Limited (Singtel), has entered a joint venture agreement with TM DC Educity Sdn Bhd (TM DC Educity), a subsidiary of Telekom Malaysia Berhad (TM) to develop and operate a data centre campus in Johor, Malaysia.

Under this agreement, Nxera MY will hold a 49% stake whilst TM DC Educity will hold 51% in a new Malaysian company, ST Dynamo DC Sdn Bhd (DC Co). They plan to invest up to $330.4m (RM1,152m) over five years, with Nxera MY committing $162m (RM564m) from internal resources.

Additionally, DC Co has secured a deal to purchase approximately 168,959 square metres of freehold land in Johor Bahru for $51.1m (RM178.2m). This acquisition, based on a market valuation of $66m (RM229m) for data centre use as of 24 May, was appraised by Rahim & Co International Sdn Bhd, an independent registered valuer.

These transactions are pending approval from TM's non-interested shareholders and regulatory authorities in Malaysia.

Singtel anticipates that these transactions will not significantly impact its financial statements for the fiscal year ending 31 March 2025.