TM's data centre bet pays off as Nxera hits 70pct take-up
KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) data centre business is gaining traction, with about 70 per cent of the capacity at its TM Nxera data centre joint venture already contracted ahead of the first phase coming online next month.
Telekom Malaysia's data centre venture, TM Nxera, is off to a strong start, with 70% of its capacity already booked ahead of the first phase's launch next month. The joint venture with Singtel, which represents 51% ownership and 49% by the company, is already 70% pre-sold, according to RHB Research analyst Jeffrey Tan. The initial 20MW of the 64MW Phase 1 capacity is expected to be operational by September, with the remaining 44MW slated for the first quarter of 2027.
Meanwhile, TM's Iskandar Puteri data centre is fully booked, with customers gradually moving in towards year-end. Despite the impressive growth, TM's data centre business remains underappreciated by analysts. RHB Research expects the segment to deliver double-digit revenue and earnings before interest, tax, depreciation, and amortisation growth in financial years 2027 and 2028.
TM's management is already discussing potential further expansions, having secured 280MW of power for the entire site. Both brokerages maintain their positive outlook on TM, following its strong second-quarter results.
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