Asia-Pacific data center operator DayOne has signed a major renewable energy agreement with Malaysian utility giant Tenaga Nasional Berhad (TNB), securing up to 500MW of solar power over a 21-year period to power its operations in Malaysia.
The solar power will be supplied by TNB’s renewable energy subsidiary and will support DayOne’s data centers at Nusajaya Tech Park in Gelang Patah and Kempas Tech Park in Johor Bahru, which together have a combined capacity of 120MW.
“Sustainability is core to how we build, operate, and grow. We’re embedding ESG principles across our value chain — from renewable energy transition to helping our customers decarbonize AI and cloud workloads,” said Jamie Khoo, CEO of DayOne.
The agreement was signed under Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS), introduced by the Ministry of Energy Transition and Water Transformation in September 2024. The CRESS framework enables corporations to directly procure renewable electricity from developers while paying a system access charge for grid usage. DayOne is the first corporation to sign a Bilateral Energy Supply Contract under the CRESS framework, marking a significant milestone in Malaysia’s energy transition.
The deal builds upon earlier agreements between DayOne and TNB, including an Electrical Service Agreement and a Memorandum of Understanding signed in 2024.
“This partnership is a powerful signal of how strategic collaboration can unlock reliable and scalable clean energy solutions for Malaysia’s most demanding digital infrastructures, including hyperscale data centers,” said Datuk Ir. Megat Jalaluddin Megat Hassan, President and CEO of Tenaga Nasional Berhad.
Originally the international unit of Chinese data center operator GDS, DayOne was spun off earlier this year into a separate entity following the completion of its Series B funding round. The company has since accelerated its expansion across Asia-Pacific.
DayOne currently operates and is developing approximately 480MW of data center capacity, with an additional 590MW in the pipeline across locations in Hong Kong, Singapore, Malaysia (Johor), Indonesia (Batam), and Japan (Tokyo). The company also recently commenced construction on a new data center site in Thailand.
In parallel with its renewable energy agreement, DayOne recently closed a RM 15 billion (approximately $3.54 billion) multi-currency financing deal to support its sustainable digital infrastructure expansion. Earlier this month, it also secured a $412 million loan to fund the development of its upcoming Batam data center campus in Indonesia.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
