DayOne, a hyperscale data centre developer, has signed gigawatt-scale power purchase agreements (PPAs) through Malaysia’s government-launched Corporate Renewable Energy Supply Scheme (CRESS).
In a deal announced on Friday (5 June), Singapore-headquartered DayOne has agreed to buy energy from TNB Renewables and TNB Power Generation, two subsidiaries of Malaysian utility major Tenaga Nasional Berhad (TNB).
It covers energy output from 1.5GW of solar PV generation capacity and 2.2GWh of battery energy storage systems (BESS). DayOne said the BESS facilities will be hybrids, paired with ground-mount solar or hybrid hydro floating solar (HHFS).
The latter, HHFS, is a technology piloted by TNB for which Malaysia’s biggest utility sees a potential for 2.5GW of deployments, which, according to the utility, could underpin procurements under the CRESS mechanism.
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Siting floating solar PV arrays on reservoirs at TNB’s existing hydroelectric power plants, a 100kW pilot was launched just under a year ago, as reported by our colleagues at PV Tech.
For DayOne, the clean energy and storage capacity will be used to decarbonise its operations in Malaysia.
The data centre developer has a development pipeline of projects in Singapore, Malaysia, Indonesia, Thailand, Japan, Hong Kong and most recently Finland. It wants to reach 100% renewable energy across its operations by 2030 or earlier and reduce Scope 1 and Scope 2 emissions by 42% in absolute terms from a 2025 baseline.
“As demand for AI and cloud infrastructure accelerates, securing long-term access to renewable energy is critical,” said DayOne CEO Jamie Khoo, who called the deal “an important milestone in how we scale digital infrastructure responsibly.”
Malaysia’s data centre boom and clean energy commitments
DayOne has two hyperscale campuses in Malaysia and claimed that its cumulative investments in Malaysia will total RM28 billion (US$6.87 billion) by the end of 2026.
The Southeast Asian country is seeing a boom in data centre investments, particularly in Johor, the southern state bordering Singapore.
At the same time, Malaysia’s government is targeting major growth in renewable energy, aiming for renewables to comprise 70% of total generation capacity by 2050, the year it has set as its net-zero target date under the National Energy Transition Roadmap (NETRA).
The national roadmap calls for 500MW of BESS deployments by 2030 to help integrate the 14GW of renewable energy capacity the plan requires. It also aims for the battery storage sector to continue scaling up beyond the end of this decade.
TNB recently inaugurated its first 100MW/400MWh large-scale BESS in Peninsular Malaysia, while a government tender, called MyBeST, has selected four projects totalling 400MW/1.600MWh, for commissioning in 2027.
The government issued its first Data Centre Framework document in October 2025. It includes a guideline for sustainable project development. The guideline considers the effectiveness of power use, carbon emissions, and water use. Projects that apply for it by the end of 2027 will be eligible for Malaysian Investment Development Authority (MIDA) tax incentives
DayOne and the two TNB subsidiaries have signed Bilateral Energy Supply Contracts (BESC), including the transfer of renewable energy certificates (RECs). The data centre company previously signed a 500MW CRESS agreement with TNB in June last year, with a 21-year term, also aimed at supporting its data centre operations in Malaysia.
In August 2025, engineering company Gamuda and developer Gentari Renewables partnered to develop 1.5GW of BESS-backed solar PV installations to support data centre operations through CRESS.
Energy-Storage.news publisher Solar Media (part of the Informa Group) will host the Energy Storage Summit Asia 2026 on 1-3 July at QSNCC, Bangkok, Thailand. The conference takes place during ASIA Sustainable Energy Week 2026 (ASEW), the region’s most influential platform for driving clean energy. For more information, visit the official website.
