DayOne Data Centers Limited and TNB Power Generation Sdn. Bhd. has entered into a formal memorandum of understanding to assess a dedicated on-site power generation solution of up to 1.5 gigawatts for a new data center development in Selangor, within the Greater Kuala Lumpur region of Malaysia.

 

The agreement, signed in Kuala Lumpur, represents one of the most significant power infrastructure collaborations in the Malaysian data center sector to date.

A Formal Partnership Takes Shape

The MOU was signed by DayOne's General Manager of Malaysia, Jimmy Yan, and TNB GenCo's Managing Director, Dato' Shahrir Abdul Latiff. The signing ceremony was witnessed by DayOne's Chief Executive Officer, Jamie Khoo, and Tenaga Nasional Berhad's President and Chief Executive Officer, Datuk Ir. Ts. Shamsul Ahmad.

 

TNB Power Generation Sdn. Bhd., known as TNB GenCo, is the wholly owned power generation subsidiary of Tenaga Nasional Berhad, Malaysia's national utility company.

The collaboration builds on an existing relationship between the two organizations, which previously worked together on DayOne's campuses in Johor and on national green energy programmes, including the Corporate Renewable Energy Supply Scheme and the Green Electricity Tariff. The Selangor project represents an extension of that partnership into a new geography and a significantly larger scale of power infrastructure planning.

What the Partnership Involves

Under the terms outlined in the MOU, the two parties will explore an integrated approach that combines dedicated on-site power generation with a battery energy storage system to be built directly into DayOne's data center infrastructure in Selangor.

The total capacity under consideration reaches up to 1.5 gigawatts, though the final capacity, configuration, and implementation model remain subject to feasibility assessments, definitive agreements, and applicable regulatory approvals.

DayOne's Chief Executive Officer Jamie Khoo said the model is designed to add new capacity and enhance system flexibility that supports the company's growth while contributing to Malaysia's energy resilience and long-term sustainability.

He described Malaysia as central to DayOne's growth strategy, with the company continuing to deepen its presence in Greater Kuala Lumpur to meet accelerating demand from artificial intelligence and cloud computing customers.

TNB's President and Chief Executive Officer, Datuk Ir. Ts. Shamsul Ahmad said that as digital infrastructure continues to expand, responsible planning becomes increasingly important to ensure new demand can be accommodated while maintaining grid reliability and supporting Malaysia's long-term energy transition goals. He described TNB's role as more pertinent than ever in balancing digital economy growth and long-term sustainability.

Energy Transition and Grid Security as Core Objectives

The initiative is framed by both companies as aligned with Malaysia's National Energy Transition Roadmap. DayOne stated that by integrating on-site power generation and battery energy storage directly with its data center infrastructure, the partnership aims to contribute to greater energy resilience, more efficient use of power infrastructure, and the accelerated adoption of renewable and lower-carbon energy solutions.

The inclusion of a battery energy storage system alongside the generation capacity reflects an approach designed to support national grid security and reliability, rather than simply drawing additional load from the existing grid.

The partnership is intended to work in concert with TNB and other industry partners to manage the power requirements of large-scale data center operations and future artificial intelligence infrastructure growth.

Expanding Beyond Johor into Greater Kuala Lumpur

The Selangor development marks DayOne's continued push into the Greater Kuala Lumpur region, which the company describes as a key economic, connectivity, and talent hub.

The company launched its first Malaysian campus, Nusajaya Tech Park, in Johor in 2023, followed by its second Johor campus, Kempas Tech Park, in 2025. The new Selangor development broadens DayOne's geographic footprint within Malaysia beyond its established Johor base.
DayOne expects its cumulative investment in Malaysia to reach over 28 billion Malaysian ringgit by the end of 2026. The company stated that it has secured over 2 gigawatts of bookings globally since its inception in 2022, and that Malaysia has been one of its most important growth markets since that time.

Malaysia's Position in DayOne's Regional Platform

DayOne is headquartered in Singapore and describes itself as a global digital infrastructure platform that develops and operates data center campuses across Asia Pacific and Europe. Its current portfolio includes sites in operation or under development in Singapore, Johor, Greater Kuala Lumpur, Indonesia, Thailand, Japan, Hong Kong SAR, Finland, and Spain.
The company said it will continue investing in the infrastructure, partnerships and capabilities needed to support rising artificial intelligence and cloud demand across the region.

The Selangor project and its associated power generation exploration are positioned as part of a broader effort to support Malaysia's ambition to attract high-value digital investment and establish itself as a leading regional hub for artificial intelligence and the digital economy.
The collaboration also carries an economic development dimension, with both parties noting its potential to strengthen local capabilities and support the broader spillover benefits of digital economy growth across the country.

Malaysia Data Center Pipelines Are Moving Fast. Is Your Intelligence Keeping Up?

Across Malaysia, hyperscale investments, colocation expansions, and edge deployments are reshaping the data center landscape at a pace that leaves little room for guesswork. The organizations winning mandates and forging partnerships are not the ones reacting to news; they are the ones who already know what is coming.

 

The Global Project Tracking (GPT) platform by Blackridge Research gives you a structured, continuously updated view of data center development activity across Malaysia, from land acquisition and planning approvals through to operational handover. Whether you are a developer, contractor, equipment supplier, or investor, the intelligence you need to act early is all in one place.

 

Timing your approach to new opportunities requires more than headlines. The GPT platform delivers project-level detail that supports genuine business development, market sizing, and competitive positioning across every major Malaysian market.

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To see how the Global Project Tracking (GPT) platform by Blackridge Research can sharpen your view of Malaysia data center activity. Book a free demo with our team today.