Singapore-headquartered DayOne Data Centers and TNB Power Generation are exploring up to 1.5 gigawatts of dedicated on-site power generation for a new DayOne data center development in Selangor, as Malaysia’s data center buildout increases pressure on power infrastructure.
The companies said the proposed arrangement would combine power generation with a battery energy storage system at the Greater Kuala Lumpur development. Final capacity, configuration and implementation remain subject to feasibility studies, definitive agreements and regulatory approvals.
The project extends an existing relationship between DayOne and Tenaga Nasional Berhad (TNB) that already covers DayOne campuses in Johor and Malaysian green-energy programs including the Corporate Renewable Energy Supply Scheme and Green Electricity Tariff.
Power planning moves closer to the data center
Large AI and cloud facilities require significant, predictable electricity supply. By examining dedicated generation located with the data center infrastructure, DayOne and TNB GenCo are testing a model that could add capacity while reducing some dependence on conventional grid expansion alone.
The companies said the configuration under study includes battery energy storage, which can help manage variability and provide greater operational flexibility. They also framed the project as complementary to Malaysia’s National Energy Transition Roadmap, although the eventual generation mix and emissions profile will depend on the final design.
DayOne Chief Executive Officer Jamie Khoo said the company is expanding in Greater Kuala Lumpur as demand from AI and cloud customers increases, and described the on-site generation and storage proposal as a way to add capacity while supporting system flexibility.
TNB President and Chief Executive Officer Shamsul Ahmad said electricity planning needs to accommodate rising digital infrastructure demand while maintaining grid reliability and longer-term energy-transition goals.
Malaysia becomes a core DayOne market
The memorandum of understanding was signed in Kuala Lumpur on August 7 by DayOne Malaysia General Manager Jimmy Yan and TNB GenCo Managing Director Shahrir Abdul Latiff.
DayOne said it has secured more than 2 GW of bookings globally since inception. In Malaysia, it launched Nusajaya Tech Park in Johor in 2023 and followed with Kempas Tech Park in 2025. The Selangor development extends that footprint into Greater Kuala Lumpur.
The company expects cumulative investment in Malaysia to exceed RM28 billion by the end of 2026.
Data center growth raises infrastructure questions
Malaysia has become one of Southeast Asia’s most active data center markets, benefiting from land availability, connectivity, investment incentives and proximity to Singapore. That growth also creates a planning challenge around generation, transmission, water, land use and the pace at which new capacity can be connected.
The proposed DayOne-TNB project is still at an exploratory stage, so the 1.5 GW figure should be read as a potential ceiling rather than committed operating capacity. The feasibility process will determine how much generation is ultimately built, what technologies are used and how the facility interacts with the wider power system.
If implemented at scale, however, the project would illustrate a broader shift in digital infrastructure: power sourcing and energy resilience are becoming part of data center design itself rather than a utility decision made after a campus has been planned.
DayOne Secures Over 1GW Renewable Energy in Malaysia in Landmark TNB Partnership