GDS, a China-based developer and operator of high-performance data centers, has reinforced its commitment to sustainability by establishing a 21-year renewable energy virtual power purchase agreement (VPPA) with Malaysia’s solar power producer and diversified renewable energy developer, Cenergi SEA Berhad (Cenergi).

Cenergi said in a statement on Monday that the agreement positions GDS among the first cohort of green power offtakers in Malaysia under the Corporate Green Power Program (CGPP) which is administered by Malaysia’s Energy Commission.

The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate offtakers in Peninsula Malaysia.

GDS has successfully subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park Data Center Campus in Johor.

According to the statement, the partnership with Cenergi empowers GDS to claim Renewable Energy Credits, facilitating reductions in greenhouse gas emissions and advancing its target of achieving net-zero carbon emissions by 2030.

Cenergi, a subsidiary of UEM Group Berhad, is a premier sustainable energy solutions company specializing in reducing carbon footprint through investment in renewable energy and energy efficiency projects.

The firm is currently one of Malaysia’s diversified renewable energy developers and the country’s largest biogas player making it a well-suited collaborator for GDS’s sustainability initiatives.

The renewable energy procured through this agreement will be supplied from Cenergi’s 29.99MWac large-scale solar photovoltaic farm that will be located in the state of Kedah, Malaysia and is expected to be operational by the fourth quarter of 2025.

Through this collaboration, GDS anticipates a reduction in its carbon footprint by up to 38,000 tonnes of carbon dioxide (CO2) equivalent per year, which is equivalent to eliminating CO2 emissions from approximately 8,400 petrol-powered passenger vehicles driven in a year and 7,400 homes’ electricity use for one year.

Combined with GDS’s existing green DC technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage.

“Collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies our commitment to fostering sustainability within the industry,” said William Huang, Chairman and Chief Executive Officer of GDS.

“As a first mover in Johor with our Nusajaya Tech Park Data Center Campus and various ongoing projects, this endeavor signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid,

“This partnership not only underscores our dedication to environmental stewardship but also reinforces our position as leaders in driving sustainable innovation within our sector,” he added.

Hairol Azizi Tajudin, Group Chief Executive Officer of Cenergi, said this collaboration underlines their dedication to sustainability and fits perfectly with their goal of promoting renewable energy projects.

“By supplying GDS with green electricity from our upcoming solar farm, we’re not just helping them reach their net-zero emissions target but also contributing to Malaysia’s larger plan for a greener energy mix,

“We believe in the positive impact of such partnerships in creating a more sustainable future for all,” he added.

According to the statement, the renewable energy procured from Cenergi’s solar farm will also support toward Malaysia’s goal of having 31 percent renewable energy in its national energy mix by 2025 as outlined in the National Energy Transition Roadmap (NETR).

Cenergi is the largest gridconnected POME biogas player in Malaysia with 33 biogas power plants with combined installed
capacity of 54 MW.

The firm currently has operational projects across biogas, solar, and energy efficiency businesses, with a strong pipeline for expansion.

Presently, Cenergi has executed ground mounted solar farms and corporate rooftop solar programs with combined capacity of 82.4 MWp, and energy savings programs with a combined investment value of MYR 45 million ($9.45 million) with
a public university and an international major retailer.

As of December 2023, Cenergi has contributed a total of 563 GWh of renewable energy to Malaysia’s national grid and helped avoid emissions over 2.7 million tonnes CO2 equivalent.

GDS is a developer and operator of high-performance data centers in China and Southeast Asia.

With a track record spanning 22 years, the firm serves over 850 customers as the largest carrier-neutral data center service provider in China.

With over 100 data centers, GDS offers data center services to hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, as well as large private sector and multinational corporations.

Recognizing the potential for growth in Asia, GDS established its international headquarters in Singapore in 2021.

INA and GDS collaborate to co-invest in data center platform in Indonesia