GDS has signed an energy deal to procure solar power in Malaysia.
The company this week announced a 21-year Virtual Power Purchase Agreement (VPPA) with Malaysian renewable energy firm, Cenergi SEA Berhad (Cenergi), under Malaysia’s Corporate Green Power Programme (CGPP).
The CGPP, an initiative from the Suruhanjaya Tenaga (Malaysia’s Energy Commission) enables businesses to sign vPPAs and participate in renewable energy projects in Malaysia.
A quota of 800MW of solar energy generation capacity has been allocated to the program, and developers can apply for a maximum capacity of 30MW with a secured off-taker.
Under the agreement with Cenergi, GDS has subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park (NTP) data center campus in Johor.
Cenergi, a subsidiary of UEM Group Berhad, will supply GDS with renewable credits generated by the company’s upcoming 29.99MWac large-scale solar farm in the northern state of Kedah. The site is expected to be operational by Q4 2025.
William Huang, chairman and CEO of GDS, said: “Collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies our commitment to fostering sustainability within the industry. As a first mover in Johor with our Nusajaya Tech Park (NTP) 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.”
Plans for the Nusajaya Tech Park (NTP) data center campus were first shared in 2021. GDS broke ground in April 2022 and launched the data center in August 2023. Phase one of the NTP campus has a net floor area of 30,310 sqm (326,275 sqm) and an IT capacity of 69.9MW. The data center uses liquid cooling. Elsewhere in Johor, GDS is developing another data center campus at YTL’s upcoming Green Data Center Park.
Hairol Azizi Tajudin, Cenegri group CEO, added: “We’re delighted to partner with GDS in Malaysia’s renewable energy journey. This collaboration underlines our dedication to sustainability and fits perfectly with our 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.”
GDS, founded in 2006, operates dozens of data centers across Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu, and Hong Kong. The company has pledged to be Net Zero by 2030.
Cenergi is the largest grid-connected Palm Oil Mill Effluent (POME) biogas player in Malaysia, with 33 biogas power plants with a combined installed capacity of 54MW. The company has also executed ground-mounted solar farms and corporate rooftop solar programs with a combined capacity of 82.4MWp.
AirTrunk is another data center firm that has signed a PPA through Malaysia’s CGPP. The company will procure the output of an upcoming 29.99MW solar farm from energy firm ib vogt. Construction is scheduled to begin in mid-2024.
