.webp)
DayOne and TNB Power Generation have agreed to explore an on-site power generation project of up to 1.5GW for a new data centre development in Selangor, supporting DayOne's expansion in Greater Kuala Lumpur.
The companies will assess a setup combining dedicated on-site generation with a battery energy storage system linked directly to the planned data centre infrastructure. The study will examine the project's capacity, configuration and delivery model, all of which remain subject to feasibility studies, formal agreements and regulatory approvals.
The arrangement builds on an existing relationship between DayOne and TNB's power generation arm. Previous work has included DayOne campuses in Johor and participation in Malaysia's green energy programmes, including the Corporate Renewable Energy Supply Scheme and the Green Electricity Tariff.
Selangor is part of DayOne's broader push in Malaysia, as demand for data centre capacity rises with artificial intelligence and cloud computing workloads. The company already has a presence in Johor through Nusajaya Tech Park, launched in 2023, and Kempas Tech Park, launched in 2025.
Energy model
The proposed model centres on dedicated generation at the site rather than relying solely on grid supply. Adding battery storage is intended to provide greater flexibility in managing electricity use at a large facility with heavy, continuous power needs.
For Malaysia, the project highlights a broader challenge facing fast-growing digital infrastructure markets: how to add large amounts of new electricity demand without placing extra strain on existing power systems. Data centre operators in Southeast Asia have increasingly sought alternative supply arrangements as governments weigh industrial growth against grid stability and energy transition targets.
The Selangor development is in the Greater Kuala Lumpur region, which DayOne described as an important centre for connectivity, economic activity and talent. Expanding there gives the company a presence in another major Malaysian market beyond Johor, one of the country's busiest data centre corridors.
The memorandum of understanding was signed in Kuala Lumpur by Jimmy Yan, General Manager of Malaysia at DayOne, and Dato' Shahrir Abdul Latiff, Managing Director of TNB GenCo. Jamie Khoo, Chief Executive Officer of DayOne, and Datuk Ir. Ts. Shamsul Ahmad, President and Chief Executive Officer of TNB, witnessed the signing.
Malaysia has become one of DayOne's main growth markets since the company entered the country. DayOne has secured more than 2GW of bookings globally since its inception and expects cumulative investment in Malaysia to exceed RM28 billion by the end of 2026.
Growth pressure
The announcement comes as electricity availability has become a central question for data centre developers across the region. Operators are under pressure to secure enough reliable supply for large campuses while also meeting environmental expectations from governments and customers.
DayOne said the integrated approach under review is intended to add new capacity and improve system flexibility. It also tied the initiative to Malaysia's National Energy Transition Roadmap and the country's efforts to attract digital investment.
Jamie Khoo, Chief Executive Officer of DayOne, said: "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. 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."
TNB framed the collaboration as part of the challenge of balancing industrial demand with broader system needs. The utility group has been positioning itself as a key enabler of Malaysia's digital economy while maintaining a focus on grid reliability and the country's longer-term energy transition.
Datuk Ir. Ts. Shamsul Ahmad, President and Chief Executive Officer of TNB, said: "As digital infrastructure continues to expand, responsible planning becomes increasingly important to ensure new demand can be accommodated while maintaining grid reliability and supporting Malaysia's long-term energy transition goals. TNB's role is now more pertinent than ever in balancing digital economy growth and long-term sustainability to ensure the economic spillover benefits all, including the rakyat."