The Iskandar Puteri Data Centre Block 2 (IPDC2) is a RM331.7 million (~US$70 million) four-storey, AI-enabled colocation data centre expansion located at Nusajaya Technology Park in Iskandar Puteri, Johor, Malaysia, owned by TM Technology Services Sdn Bhd (a subsidiary of Telekom Malaysia) and built as the second phase of TM’s existing Iskandar Puteri Data Centre campus. Designed to deliver an additional 10MW of IT load capacity with a target PUE of 1.4 and Uptime Institute Tier III certification, the facility serves wholesale and enterprise clients including GPU-as-a-Service customers supporting AI workloads. Construction surpassed 70% completion by mid-2025 with the project on track, and IPDC2 was targeted for commercial operations by end of Q3 or early Q4 2025 — sitting alongside the larger and separately developed TM Nxera 64MW AI-ready campus (a 51:49 JV with Singtel’s Nxera), which is targeted for first-phase commercial operations by mid-2026 and can scale to 200MW. That same 200MW full-buildout benchmark is being pursued further up the Southeast Asian coast, where the $2.1 billion SGI-HCM AI Data Center Campus in Ho Chi Minh City — developed by AIC and KinhBac on a 10-hectare site in Cu Chi District — is set to break ground on 30 April 2026, targeting 50MW in its first phase and capable of running up to 100,000 GPUs at full capacity.

Project Overview

IPDC Block 2 (TM-owned expansion):

• Type: Colocation data centre expansion (new block on existing campus)
• Location: Lingkaran Teknologi 1, Nusajaya Technology Park, Iskandar Puteri, Johor, Malaysia
• Owner: TM Technology Services Sdn Bhd (subsidiary of Telekom Malaysia Berhad)
• Total contract value: RM331.7 million (~US$70 million)
• IT load capacity added: 10MW (bringing total IPDC campus capacity to ~30MW)
• Building: Four-storey block
• Target PUE: 1.4 (vs. 1.8 in Block 1)
• Certifications: Uptime Institute Tier III (design, build, operations)
• Construction start: July 2024
• Construction progress: 70%+ as of mid-2025
• Target commercial operations: Q3–Q4 2025
• Features: AI-enabled; GPU-as-a-Service (GPUaaS) capability; redundant systems for zero downtime

TM Nxera Campus (JV with Singtel’s Nxera — separate but adjacent development):

• Type: New AI-ready hyperscale data centre campus
• Owner: TM Nxera (51% TM, 49% Nxera/Singtel) — branded ST Dynamo DC
• Initial capacity: 64MW (scalable to 200MW)
• Power agreement: 280MW secured from Tenaga Nasional (TNB), signed January 12, 2026
• Target commercial operations (Phase 1): Mid-2026
• Groundbreaking: July 25, 2024
• Certifications target: LEED standards; energy and water-efficient design
• Connectivity: Backed by TM and Singtel Group’s Digital InfraCo subsea cable networks (415,000+ km global reach)
• TM investment stake: RM588 million

Project Team

IPDC Block 2:

• Owner: TM Technology Services Sdn Bhd / Telekom Malaysia Berhad
• TM Group CEO: Amar Huzaimi Md Deris
• EPC Contractor: IJM Construction Sdn Bhd (wholly owned subsidiary of IJM Corporation Berhad)
• IJM CEO & Managing Director: Liew Hau Seng

TM Nxera JV Campus:

• Joint Venture: TM Nxera (51% Telekom Malaysia, 49% Nxera/Singtel)
• TM Nxera Chairman: Bill Chang
• TM Nxera CEO: Mahathir bin Said
• TM Nxera COO: Benedict Kwok
• Power supplier: Tenaga Nasional Berhad (TNB)
• Connectivity provider: TM and Singtel Group’s Digital InfraCo subsea network
• Key government representatives at groundbreaking: YB Gobind Singh Deo (Malaysia Digital Minister); Low Yen Ling (Singapore Senior Minister of State for Trade and Industry)

Published 14th November 2024: On June 20, Telekom Malaysia (TM), Malaysia’s leading integrated telecommunications company and also the national connectivity and digital infrastructure provider, shared that it was doubling its two data centres’ capacity to 40MW. These centres’ two locations are Iskandar Puteri and Klang Valley. Additionally, it is still considering other opportunities to expand its data centre business.

TM and Singapore’s SingTel agreed to a 51:49 Joint Venture to develop an AI-enabled, 64MW data centre in Johor. Depending on future demand, the partners can expand it to 200MW. TM’s share in the joint venture is RM588 million.

This eventually led to the RM331.7 million Iskandar Puteri Data Centre Block 2 Construction Project, which TM Technology Services Sdn Bhd, under Telekom Malaysia, owns. With these developments, Johor is becoming a key data centre location in the country, mainly due to its proximity to Singapore, which ranks as the sixth-established data centre market in the Asia Pacific.

Groundbreaking Ceremony for Block 2 of the Iskandar Puteri Data Centre

Groundbreaking for Iskandar Puteri Data Centre Block 2 Project (https://www1.tm.com.my/)

TM and SingTel’s Nxera held a groundbreaking ceremony on July 25 for the Iskandar Puteri, Johor data center campus. This comes more than a month after the joint venture announcement, which aims to boost this Malaysian state’s status as a digital hub.

The construction will upgrade the Iskandar Puteri Data Centre’s maintenance capability and eliminate downtime due to redundant systems. The goal is to achieve Tier III certification from the Uptime Institute, the industry tier certification provider for data centers in terms of build, design, and operations.

Malaysia’s data center sector has been experiencing rapid growth, and the country is poised to become one of the key hubs, thanks to its supportive infrastructure and strategic location. Besides Iskandar Puteri, other emerging data center locations in the country include Cyberjaya and Sedenak.

The project also supports the government’s efforts to steer its digital economy and transform Malaysia into a focal point of technological innovation and AI development.

Gracing the ceremony were some of the Malaysia and Singapore’s government officials, namely:

• YB Gobind Singh Deo – Digital Minister (Malaysia);
• YB Lee Ting Han – Chairman of Johor State Investment, Trade, Consumer Affairs and Human Resources Committee (Malaysia);
• Low Yen Ling – Senior Minister of State for Trade and Industry (MTI), and Ministry of Culture, Community, and Youth (Singapore).

The Contractor and The Scope

IMJ-Contractor for Iskandar Puteri Data Centre Block 2 (https://klproperty.cc/)

IJM Corporation Berhad’s wholly owned subsidiary, IJM Construction Sdn Bhd, secured the contract for the design and construction of the Iskandar Puteri Data Centre Block 2. Formed in 1983, IJM is currently one of Malaysia’s top conglomerates, operating its four core business ventures, namely construction, infrastructure concession, property development, and manufacturing and quarrying of construction materials.

The contract consists of the following scope of work:

• Building works
• Commissioning
• Electrical services
• Fit-out works
• Foundation
• Mechanical services
• Sub-structure
• Super-structure
• Testing

Block 2’s construction began in July 2024, and the expected completion is around the third quarter of 2025.

The company CEO and Managing Director shared that the data centre industry has been experiencing rapid growth parallel to the advancement in cloud computing, which requires scalable and powerful infrastructure.

This participation only proves how ardent the company’s intention and commitment are to adapt and innovate the needs of tech industries. The centre will be able to highlight IJM’s prowess in executing complex and high-speed development, which is crucial to the digital infrastructure of the country.

Factsheet

Owner: Telekom Malaysia through its subsidiary, TM Technology Services Sdn Bhd

Project Name: Block 2 of the Iskandar Puteri Data Centre

Project Type: Data Center Construction

Location: Lingkaran Teknologi 1, Taman Teknologi Nusajaya, 79250 Iskandar Puteri, Johor Darul Takzim

Contractor (EPC): IJM Construction Sdn Bhd

Value: RM331.7 million

Construction Start: July 2024

Construction End: 3^rd Quarter of 2025