KUALA LUMPUR: Telekom Malaysia Bhd's (TM) joint venture (JV) with Nxera MY Pte Ltd to develop a data centre in Johor will contribute positively to TM's bottomline from 2029 onwards.
Public Investment Bank Bhd (PublicInvest) noted the bottomline contribution was based on the assumption that the construction period will run for two years.
"The proposed JV will enable TM to tap the growing demand for data centres, driven by the adoption of cloud computing, artificial intelligence, e-commerce, edge computing, and 5G.
"Nxera is one of the largest data centre operators in Singapore with a proven track record. Meanwhile, Johor is strategically located given its proximity to subsea cable links between Singapore and Malaysia.
"TM currently has a total data centre capacity of only 20 megawatts (MW), with its main facilities in Cyberjaya and Johor running at full capacity. We believe this investment could contribute positively to the group's bottomline from FY29 onwards," it said in a note.
TM announced a proposal to set up a JV with Singtel's regional data centre platform, Nxera, to
develop a greenfield hyperscale data centre in Iskandar Puteri, Johor.
TM will hold a 51 percent interest in the JV, while Nxera will hold the remaining 49 per cent. In the initial stage, the JV is looking at a targeted capacity of 64 MW with a total investment of RM1.15 billion.
However, the JV may progressively scale up the data centre over several phases to achieve a total capacity of up to 200 MW in the long term.
