TM Nxera has signed a long-term electrical supply agreement with Tenaga Nasional, Malaysia’s primary electricity utility, for 280MW of power for its under-development data center campus in Iskandar Puteri, Johor, Malaysia.

TM Nxera, which is a joint venture between Telekom Malaysia (TM) and Nxera, Singtel’s Malaysian data center arm, has said it expects the campus to begin its first phase of operations sometime this year.

Commenting on the announcement, TM Nxera CEO Mahathir bin Said, said: “As reliable and sustainable energy is key to powering Malaysia’s digital economy and AI ambitions, this agreement with Tenaga Nasional is a critical step for our green digital infrastructure in Johor. TM Nxera will be a strategic catalyst for AI, cloud, and advanced technology adoption.

“With 280MW of secured power, we are enhancing our capabilities to support Malaysia’s transformation, attracting global technology investments and fuelling a thriving ecosystem for industrial growth.”

According to the company, the data center is designed to support large-scale AI workloads and will have a capacity of approximately 200MW. It will also feature liquid-cooling technologies and integrate energy and water-efficient systems, the company claimed. In addition, connectivity will be supported by TM and Singtel Group’s Digital InfraCo subsea cable networks.

The data center was originally unveiled in June 2024, with its initial phase expected to offer 64MW. The company subsequently broke ground on the facility in July of the same year.

Over the past couple of years, Tenaga Nasional has signed several electrical supply agreements with data center companies across Malaysia.

Last June, the utility signed a 500MW solar supply agreement with DayOne to power DayOne’s Nusajaya Tech Park, in Gelang Patah, and Kempas Tech Park, in Johor Bahru, which have a combined capacity of 120MW.

Before this, in December of last year, it signed a 400MW electricity supply agreement with Bridge Data Centres to power its MY07 data center in Johor Ulu Tiram, Malaysia.

In order to facilitate these agreements, Tenaga has launched several initiatives, including its TNB Green Lane Pathway and One-Stop Centre (OSC) for data centers. The OSC features fast-track supply offerings for electricity, where data centers are connected three times faster than the normal delivery time, reducing the implementation period from 36-48 months to just 12 months.