Milbank LLP advised Telekom Malaysia Berhad on its joint venture to build an up to 200 MW new hyper-connected, AI-ready data center in Johor, Malaysia. The deal was executed between TM’s subsidiary TM DC Educity Sdn Bhd and Nxera MY Pte. Ltd. (“Nxera”), a subsidiary of Singapore Telecommunications Limited (“Singtel”). KKR & Co. Inc. is SingTel’s partner in Nxera.
The data center is located just 16 kilometers from Singapore and has an initial planned capacity of 64 MW which the parties may progressively scale up over several phases to achieve a targeted capacity of up to 200MW in the long term. It will feature advanced technologies such as liquid cooling to efficiently support the high-power density workloads and operations. The center will be the largest to date for TM and Nxera and will be a LEED-certified green building.
The joint venture will be supported by TM and Singtel’s extensive subsea cable network linking Singapore and Malaysia to provide global connectivity and enhanced network performance with lower latency and improved reliability. The partnership reflects increased demand for the hyperscale, next-generation AI providers working to increase digitalization and cloud capabilities.
“We are very proud to have helped TM on this significant transaction in their goal to expand their capabilities in this important area.” said David Zemans, managing partner of Milbank’s Singapore office and Asia practice.
The Milbank team was led by Mr. Zemans and partner Jacqueline Chan and included Global Project, Energy and Infrastructure Finance associates Hua Chan, Stephanie Kam and Fathi Assegaf.
July 5, 2024
