en.Wedoany.com Reported - Hyperscale data center developer DayOne has signed a gigawatt-scale Power Purchase Agreement (PPA) with two subsidiaries of Tenaga Nasional Berhad (TNB)—TNB Renewables and TNB Power Generation—under Malaysia's Corporate Renewable Energy Supply Scheme (CRESS).
The agreement covers 1.5 gigawatts of solar photovoltaic capacity and 2.2 gigawatt-hours of energy output from Battery Energy Storage Systems (BESS). DayOne stated that the BESS facilities will be paired with ground-mounted solar or hybrid hydro-floating solar (HHFS). HHFS is a technology piloted by TNB, with a claimed deployment potential of 2.5 gigawatts, supporting procurement under the CRESS mechanism. TNB deploys floating solar photovoltaic arrays on existing hydroelectric dam reservoirs, having launched a 100-kilowatt pilot project less than a year ago.
DayOne plans to use this clean energy and storage capacity to decarbonize its Malaysian operations. The data center developer aims to achieve a 100% renewable energy target by 2030 or earlier, and reduce absolute Scope 1 and Scope 2 emissions by 42% from a 2025 baseline. DayOne CEO Jamie Khoo stated that the agreement is "a significant milestone in responsibly scaling digital infrastructure."
DayOne operates two hyperscale campuses in Malaysia, with cumulative investment expected to reach 28 billion Malaysian ringgit (approximately US$6.87 billion) by the end of 2026. The country is experiencing a data center investment boom, and the Malaysian government plans to achieve 70% renewable energy in total installed capacity by 2050 under the National Energy Transition Roadmap (NETRA). NETRA requires the deployment of 500 megawatts of BESS by 2030 to integrate 14 gigawatts of renewable energy capacity and drive sustained growth in the battery storage industry. TNB recently commissioned its first large-scale 100-megawatt/400-megawatt-hour BESS in Peninsular Malaysia, while the MyBeST government tender has selected four projects totaling 400 megawatts/1.6 gigawatt-hours, scheduled for commissioning in 2027.
The Malaysian government released its first data center framework document in October 2025, including guidelines for sustainable project development, with projects applied for before the end of 2027 eligible for tax incentives from the Malaysian Investment Development Authority (MIDA). DayOne purchases energy from TNB through Bilateral Energy Supply Contracts (BESC) and transfers Renewable Energy Certificates (RECs). The company previously signed a 500-megawatt, 21-year CRESS agreement with TNB in June 2025.
In August 2025, engineering firm Gamuda partnered with developer Gentari Renewables to develop 1.5 gigawatts of BESS-backed solar photovoltaic installations to support data center operations through CRESS.
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