APAC data center developer DayOne has signed a non-binding Memorandum of Understanding with TNB Power Generation, a subsidiary of Malaysian utility Tenaga Nasional Berhad, to jointly assess the development of an up to 1.5GW on-site generation solution for DayOne’s planned data center campus in Selangor, Malaysia. The agreement, formalized in early August, is expected to cover both on-site power generation and battery energy storage, although the final capacity, configuration, and implementation model remain subject to feasibility studies, definitive agreements, and regulatory approvals.
The move reflects a growing trend among data center operators in Southeast Asia to secure dedicated, behind-the-meter power supply as grid constraints and long interconnection queues threaten project timelines. By co-locating generation and storage with its infrastructure, DayOne aims to reduce reliance on grid availability while supporting the escalating power demands of AI and cloud workloads. Jamie Khoo, CEO of DayOne, said the partnership is central to the company’s expansion strategy in Greater Kuala Lumpur. “Together with TNB, we are exploring an integrated approach that combines on-site power generation and a battery energy storage system directly with our data center infrastructure,” he said. “This model is designed to add new capacity and enhance system flexibility that supports our growth while contributing to Malaysia's energy resilience and long-term sustainability.”
The Selangor campus is still in early development. DayOne acquired 78.80 acres of land for the facility last month from Malaysian property developer Mah Sing, with the transaction expected to close in the second half of 2027. The partnership with TNB builds on an existing relationship between the two companies. In June, DayOne signed agreements with TNB for 1.5GW of solar capacity and 2.2GWh of battery energy storage, following an earlier deal for 500MW of solar power to serve two of its Malaysian data centers—Nusajaya Tech Park in Gelang Patah and Kempas Tech Park in Johor Bahru—which together host 120MW of IT capacity.
DayOne, spun out of Chinese data center firm GDS in 2025, currently operates more than 500MW of capacity across Hong Kong, Singapore, Malaysia, Indonesia, and Japan, with an additional 500MW in its pipeline. The company’s push into on-site energy underscores a broader industry shift toward self-supply models, as hyperscale and AI-driven demand continues to outpace traditional utility-scale power delivery in key APAC markets.
DayOne partners with TNB to explore up to 1.5GW on-site power for Selangor data center campus
By: IDCNOVARegion: Southeast Asia