DayOne and TNB GenCo Explore Up to 1.5 GW On-Site Power Generation for Selangor Data Center

Singapore-headquartered digital infrastructure platform DayOne Data Centers Limited has announced a collaboration with TNB Power Generation Sdn. Bhd. (TNB GenCo), the wholly owned power generation subsidiary of Tenaga Nasional Berhad (TNB). The partnership will explore a dedicated on-site power generation solution of up to 1.5 gigawatts (GW) for DayOne's new data center development in Selangor, located within Malaysia's Greater Kuala Lumpur region.

The collaboration was formalized through a Memorandum of Understanding signed in Kuala Lumpur on August 7. The signing ceremony involved DayOne General Manager of Malaysia, Jimmy Yan, and TNB GenCo Managing Director, Dato' Shahrir Abdul Latiff. It was witnessed by DayOne Chief Executive Officer Jamie Khoo and TNB President and Chief Executive Officer Datuk Ir. Ts. Shamsul Ahmad.

This initiative builds on an existing partnership between DayOne and TNB, which includes cooperation on DayOne's campuses in Johor and national green energy programmes such as the Corporate Renewable Energy Supply Scheme (CRESS) and the Green Electricity Tariff (GET). The current project looks to combine DayOne's digital infrastructure expertise with TNB GenCo's power generation capabilities to support national grid security, reliability, and the growing operational needs of large-scale data centers and future AI infrastructure.

According to the companies, the final capacity, configuration, and implementation model remain subject to feasibility assessments, definitive agreements, and applicable regulatory approvals. The project incorporates dedicated on-site power generation and a battery energy storage system (BESS) directly integrated with data center infrastructure. This approach aligns with Malaysia's National Energy Transition Roadmap (NETR) to advance energy resilience, efficient power infrastructure use, and lower-carbon energy adoption.

DayOne expects its cumulative investment in Malaysia to reach over RM28 billion by the end of 2026. The company's prior Malaysian developments include the Nusajaya Tech Park in Johor launched in 2023, followed by the Kempas Tech Park in 2025. The new Selangor development represents an expansion into the Greater Kuala Lumpur region to capture rising cloud and AI demand.

Globally, DayOne has secured over 2 GW of bookings since its inception in 2022. The company operates or develops next-generation, high-capacity data centers across markets in Asia Pacific and Europe, catering to global hyperscalers and enterprises.

"The collaboration between DayOne and TNB GenCo highlights a critical operational shift for large-scale digital infrastructure providers. As data centers and artificial intelligence workloads scale rapidly, securing reliable, high-capacity power becomes a primary challenge. By exploring dedicated on-site power generation and battery storage solutions directly integrated with facilities, companies can manage surging energy demands while supporting local grid stability. This model offers a practical blueprint for balancing rapid technological growth with sustainable infrastructure planning in emerging tech hubs." — Dr. Shishir Gupta, Founder & CEO, StartupLanes