DayOne has signed a corporate offtake agreement with TNB for 500 MW solar energy supply
It has become the 1st corporation to adopt Malaysia’s CRESS framework via a bilateral contract
The company has also raised RM 15 billion for green data centers, backed by Asia Pacific’s ‘largest’ Islamic financing
DayOne Data Centers Singapore has signed a 21-year agreement with Malaysian utility Tenaga Nasional Berhad (TNB), turning offtaker for up to 500 MW of solar energy generation for its data center operations in Malaysia.
TNB’s wholly-owned subsidiary, TNB Renewables, will develop and operate new solar PV capacity to power DayOne’s assets, Nusajaya Tech Park (NTP) and Kempas Tech Park (KTP) in Malaysia.
DayOne said this agreement is part of its overarching ambition to fully power its operations with renewable energy.
Signing the Corporate Renewable Energy Supply Scheme (CRESS) agreement makes DayOne the first corporation to execute a Bilateral Energy Supply Contract (BESC) under Malaysia’s CRESS framework that supports medium and high-voltage corporate customers to directly access renewable energy through TNB’s grid.
“As the first CRESS agreement to deliver up to 500 megawatts of green energy, this partnership is a powerful signal of how a strategic collaboration can unlock reliable and scalable clean energy solutions for Malaysia's most demanding digital infrastructures, including hyperscale data centers,” said TNB President and CEO Megat Jalaluddin Megat Hassan.
DayOne sees Malaysia emerging as one of Asia’s largest data center markets with a projected supply capacity reaching 4.2 GW to 6.1 GW by 2030, as per its joint research with the Boston Consulting Group (BCG). The country will need 6 GW of additional power supply and upgraded utilities to meet future data center demand, according to their findings.
Data centers are set to be one of the main solar energy growth drivers in the near future, according to various studies, including one from the International Energy Agency (see Solar PV To Meet Close To 50% Of Global Electricity Demand Growth Through 2027).
Additionally, DayOne has also raised a combined RM 15 billion ($3.53 billion) in local Malaysian currency and USD to support its green data centers in Johor-Singapore Special Economic Zone (JS-SEZ), announced ASEAN-focused Maybank, which is underwriting RM 2.5 billion ($589 million) of this loan. Maybank called it the largest Islamic financing for data centers in Asia Pacific.
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