Malaysia’s data center industry gets 500 MW solar, 1 GWh battery storage boost

        A 500 MW solar job combined with a 1 GWh battery storage system is prepared in Malaysia to provide sustainable electrical energy to DayOne's information. The task, backed by IOI Corporation and Tenaga Nasional Berhad, will run under the nation's Corporate Renewable Energy Supply Scheme.    

A 500 MWac solar photovoltaic task paired with a 250 MW/1,000 MWh battery energy storage system (BESS) is set to be established on roughly 1,300 acres of land in Bahau, Negeri Sembilan, Malaysia.

The enormous solar-plus-storage task will be established by IOI Corporation Berhad (IOI), among Malaysia’s leading incorporated palm oil manufacturers, in collaboration with Tenaga Nasional Berhad (TNB), the nation’s biggest electrical energy energy, and a consortium of undefined little and medium-sized business.

“The job will be supported by TNB’s long-lasting renewable resource offtake contract with DayOne Data Centres Limited, a leading international digital facilities platform headquartered in Singapore,” IOI stated in a declaration. “Under the arrangement, DayOne is anticipated to acquire as much as 500MWac of renewable resource over a 21-year duration to support its information centre operations in Malaysia, as revealed by the celebrations on 11 June 2025.”

The task marks IOI’s very first massive renewable resource financial investment under Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS), which permits business electrical energy customers to obtain eco-friendly power straight from independent designers through the nationwide grid. The plan intends to motivate personal financial investment in renewable resource facilities while supporting the decarbonization of energy-intensive markets.

Malaysia is broadening its utility-scale solar and energy storage capability to satisfy increasing electrical power need from information. In August 2025, tidy energy business Gentari and engineering group Gamuda revealed strategies to collectively establish 1.5 GW of solar capability, together with battery storage, to provide hyperscale information centers under CRESS.

The fast development of Malaysia’s information center market has actually likewise raised issues about electrical energy supply, grid capability and water accessibility. A March 2026 analysis highlighted the obstacles of conference increasing electrical power need while keeping grid stability and guaranteeing enough dispatchable generation. Unpredictability over grid gain access to charges has actually likewise been recognized as a crucial element impacting the industrial practicality of business renewable resource jobs.

In September 2026, Malaysia modified the CRESS structure to enhance job bankability and promote financial investment. The modifications presented a set system gain access to charge of MYR 0.14 ($0.03)/ kWh for certifying company eco-friendly electrical power supply tasks and a minimum 10-year agreement term in between designers and business customers. Tasks need to start business operations by the end of 2028 to get approved for the minimized charge. At the time, 11 renewable resource designers and 8 business customers had actually signed up tasks amounting to roughly 3.15 GW under the plan.

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