TM Nxera Secures 280MW Power Deal with TNB for Major AI Data Center Campus in Malaysia

TM Nxera Inks 280MW Power Pact for Johor AI Data Center Hub January 12, 2026 In a significant move for Malaysia's digital infrastructure ambitions, TM Nxera has secured a long-term electrical supply agreement with national utility Tenaga Nasional Berhad (TNB) for 280 megawatts (MW) of power. The deal underscores the critical link between reliable energy supply and the development of large-scale data centers capable of supporting the region's growing artificial intelligence (AI) and cloud computing demands. The agreement, announced on Tuesday, will power TM Nxera's under-construction data center campus in Iskandar Puteri, Johor. The joint venture between Telekom Malaysia and Singtel's data center arm, Nxera, expects the first phase of the campus to commence operations later this year. The facility is specifically designed for large-scale AI workloads and is slated to have an IT capacity of approximately 200MW upon completion. It will incorporate advanced liquid-cooling technologies and energy-efficient systems, with connectivity supported by the subsea cable networks of TM and Singtel Group's Digital InfraCo. TM Nxera CEO Mahathir bin Said emphasized the strategic importance of the pact, stating, "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." He added that the secured 280MW of power enhances the venture's capability to "support Malaysia’s transformation, attracting global technology investments and fuelling a thriving ecosystem for industrial growth." The development is part of a broader trend of major power procurement deals in Malaysia's data center sector, facilitated by TNB's initiatives like its "Green Lane Pathway" and One-Stop Centre designed to fast-track electricity connections for such projects. In recent months, TNB has signed a 500MW solar supply agreement with DayOne and a 400MW electricity supply pact with Bridge Data Centres, highlighting the utility's pivotal role in enabling the country's rapid data center expansion. For the industry, this agreement signals Malaysia's strengthening position as a competitive data center hub in Southeast Asia, particularly for energy-intensive AI computing. Securing a substantial, long-term power commitment of this scale is often a prerequisite for attracting hyperscale cloud providers and advanced technology investments, positioning Johor as a key node in the region's digital infrastructure landscape. Source: datacenterdynamics