APAC data center developer DayOne has partnered with TNB Power Generation, a subsidiary of Malaysian electrical utility TNB, to explore the development of an up to 1.5GW on-site generation solution for DayOne’s in-development data center in Selangor, Malaysia.

The partnership was formalized via a non-binding Memorandum of Understanding signed early last month. The on-site energy solution is expected to include both on-site generation and battery energy storage. The final capacity, configuration, and implementation model remain subject to feasibility assessments, definitive agreements, and applicable regulatory approvals.

“Malaysia is central to DayOne's growth, and we continue to deepen our presence in Greater Kuala Lumpur as we scale to meet accelerating AI and cloud demand. Together with TNB, we are exploring an integrated approach that combines on-site power generation and a battery energy storage system (BESS) directly with our data center infrastructure,” Jamie Khoo, CEO of DayOne, said. “This model is designed to add new capacity and enhance system flexibility that supports our growth while contributing to Malaysia's energy resilience and long-term sustainability.”

DayOne’s Selangor campus is in its early stages of development. The company acquired land for the facility last month from Malaysian property developer Mah Sing. The site spans 78.80 acres, with the deal expected to close in the second half of 2027.

APAC-focused DayOne was spun out of Chinese data center firm GDS back in 2025. The company's portfolio currently comprises more than 500MW of data center capacity in service and under construction, and more than 500MW held for future development across sites in Hong Kong, Singapore, Malaysia (Johor), Indonesia (Batam), and Japan (Tokyo).

Its deal with TNB builds on an existing relationship between the two firms. In June, DayOne signed a deal with the utility for 1.5GW of solar capacity and 2.2GWh of battery energy storage. This followed a deal for 500MW of solar power for two of its data centers in Malaysia, namely, Nusajaya Tech Park, in Gelang Patah, and Kempas Tech Park, in Johor Bahru, which combined have a capacity of 120MW.