China-based data centers developer and operator GDS has signed a supplemental agreement with Malaysia-based utility firm Tenaga Nasional Berhad (TNB) for powering data center campus in Malaysia.

Both parties said in a statement the supplemental agreement to the Electricity Supply Agreement (ESA) is to ensure electricity to be swiftly and reliably supplied to GDS’ data center campus in Johor Bahru.

The ESA for this collaboration was sealed in October 2022. Through the agreement, GDS Nusajaya Tech Park Phase 1 Data Centers will start operations with an interim supply of 16MW in July 2023 and a permanent supply of 85.5MW within 2023.

“We are very delighted to deepen our relationship with TNB. With TNB’s unwavering commitment in providing reliable electricity supply to our data center campus in Johor Bahru, GDS is well-positioned to offer world-class data center services in the region, further strengthening Malaysia’s digital infrastructure and accelerating its digital transformation and growth,” said William Huang, the Founder, Chairman and Chief Executive Officer of GDS.

He said the firm looks forward to the collaboration with TNB in the adoption of renewable energy as part of its sustainable development efforts, such as a smart green solution, including rooftop solar with GSPARX, dark fibre connection with ALLO, and new green technology with TNB Renewables.

“Through this strategic partnership, we believe we can make significant contributions to support Malaysia’s ambition in becoming a data center hub and driving the regional digital economy,

“We are grateful for TNB’s support and strive to foster a fruitful partnership ahead,” he added.

As a leading data center operator, GDS made its environmental, social, and governance (ESG) commitment of achieving carbon neutrality and 100 percent renewable energy usage by 2030.

“We are confident that our collaboration with GDS has great potential to benefit both parties as well as Malaysians,

“TNB will extend its collaboration into the provision of smart energy solutions,” said Indera Ir. Baharin Din, Chief Executive Officer of TNB.

According to him, this collaboration is one of many initiatives that is accelerating the growth of Malaysia’s digital economy, which is further driven by the increased usage of cloud-based services, internet of things (IoT), big data analytics and the rapid pace of digitalization in the region.

GDS’s facilities are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated.

The company also builds, operates and transfers data centers at other locations selected by its customers in order to fulfill their broader requirements.

The Company’s customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, information technology (IT) service providers, and large domestic private sector and multinational corporations.

TNB’s core activities are in the generation, transmission, and distribution of electricity.

In addition to be the nation’s primary electricity generation enterprise, TNB also transmits and distributes all the electricity in Peninsular Malaysia, Sabah and Federal Territory of Labuan.

As of June 30, 2022, TNB supplies electricity to approximately 10.4 million customers.

TNB, through its subsidiaries, is also involved in the manufacturing of transformers, high voltage switchgears and cables; the provider of professional consultancy services, construction and operating and maintenance of district cooling facilities, generation equipment, repair and maintenance, fuel supply services; services related to renewable energy, energy efficiency and power quality; higher education and skill training and undertakes research and development.

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