China based data centre firm, GDS, recently solidified a substantial 21-year Virtual Power Purchase Agreement (VPPA) with Cenergi SEA Berhad, a leading renewable energy firm based in Malaysia.
As per the firm, this agreement operates within the framework of Malaysia’s Corporate Green Power Programme (CGPP), an initiative spearheaded by Suruhanjaya Tenaga, Malaysia’s Energy Commission. The CGPP program facilitates businesses’ involvement in VPPAs, contributing to the expansion of renewable energy projects throughout Malaysia.
The CGPP initiative has allocated a significant quota of 800MW of solar energy generation capacity. Developers are eligible to apply for up to 30MW of capacity with a secured off-taker, fostering an environment conducive to sustainable energy initiatives.
Under the terms of the agreement, GDS commits to subscribing to 22.5MWac of renewable power for its operations at the Nusajaya Tech Park (NTP) data center campus, located in Johor, Malaysia. This move shows GDS’s dedication to sustainable practices and its proactive approach to embracing renewable energy solutions for its infrastructure.
Cenergi, a subsidiary of UEM Group Berhad, will be the primary supplier of renewable credits to GDS, leveraging its upcoming 29.99MWac large-scale solar farm in Kedah, a northern Malaysian state. Expected to commence operations by Q4 2025, the solar farm represents a significant leap forward in bolstering Malaysia’s renewable energy portfolio.
The firm said that by leveraging Cenergi’s solar farm, GDS will gain access to a reliable and sustainable source of renewable power, aligning with its broader commitment to environmental stewardship and reducing carbon footprint.
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.”
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.”
It is reported that 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.
Further, 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. It is expected that the construction is scheduled to begin in mid-2024.
