Power & Energy · Report

DayOne has partnered with Tenaga Nasional Berhad to develop up to 1.5 gigawatts of onsite generation and battery storage for a planned data center campus in Selangor, Malaysia.

Demonstrates the shift toward hybrid microgrids for hyperscale sites in emerging markets, reducing transmission dependency while validating large-scale co-location of generation and compute in Southeast Asia.

Trade pressSlicast · September 1, 2026 at 15:05 UTC · Global · Source: Data Center Dynamics

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APAC data center developer DayOne has partnered with TNB Power Generation, a subsidiary of Malaysian electrical utility TNB, to explore an on-site generation solution of up to 1.5GW for its planned data center in Selangor, Malaysia. The partnership was formalized via a non-binding memorandum of understanding signed early last month. The on-site energy solution is expected to include both on-site generation and battery energy storage. Final capacity, configuration, and implementation models remain subject to feasibility assessments, definitive agreements, and applicable regulatory approvals.

“Malaysia is central to DayOne's growth, and we continue to deepen our presence in Greater Kuala Lumpur as we scale to meet accelerating AI and cloud demand. Together with TNB, we are exploring an integrated approach that combines on-site power generation and a battery energy storage system (BESS) directly with our data center infrastructure,” Jamie Khoo, CEO of DayOne, 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.”

DayOne’s Selangor campus remains in the early stages of development. The company acquired land for the facility last month from Malaysian property developer Mah Sing. Spanning 78.80 acres, the transaction is expected to close in the second half of 2027.

Spun out of Chinese data center firm GDS in 2025, APAC-focused DayOne currently holds more than 500MW of data center capacity in service and under construction, alongside another 500MW earmarked for future development. Its portfolio spans sites across Hong Kong, Singapore, Malaysia (Johor), Indonesia (Batam), and Japan (Tokyo).

This agreement builds on an existing relationship between the two firms. In June, DayOne signed a separate deal with the utility for 1.5GW of solar capacity and 2.2GWh of battery energy storage. That followed an earlier arrangement for 500MW of solar power dedicated to two of its Malaysian facilities: Nusajaya Tech Park in Gelang Patah and Kempas Tech Park in Johor Bahru, which together hold a combined capacity of 120MW.

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