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

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

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

The massive solar-plus-storage project will be developed by IOI Corporation Berhad (IOI), one of Malaysia’s leading integrated palm oil producers, in partnership with Tenaga Nasional Berhad (TNB), the country’s largest electricity utility, and a consortium of unspecified small and medium-sized enterprises.

“The project will be supported by TNB’s long-term renewable energy offtake agreement with DayOne Data Centres Limited, a leading global digital infrastructure platform headquartered in Singapore,” IOI said in a statement. “Under the agreement, DayOne is expected to procure up to 500MWac of renewable energy over a 21-year period to support its data centre operations in Malaysia, as announced by the parties on 11 June 2025.”

The project marks IOI’s first large-scale renewable energy investment under Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS), which allows corporate electricity consumers to procure renewable power directly from independent developers through the national grid. The scheme aims to encourage private investment in renewable energy infrastructure while supporting the decarbonization of energy-intensive industries.

Malaysia is expanding its utility-scale solar and energy storage capacity to meet rising electricity demand from data centers. In August 2025, clean energy company Gentari and engineering group Gamuda unveiled plans to jointly develop 1.5 GW of solar capacity, alongside battery storage, to supply hyperscale data centers under CRESS.

The rapid growth of Malaysia’s data center industry has also raised concerns about electricity supply, grid capacity and water availability.


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