GDS, a prominent data center operator, has entered into a 21-year Virtual Power Purchase Agreement (VPPA) with Cenergi SEA Berhad, a Malaysian renewable energy firm. The agreement, facilitated under Malaysia’s Corporate Green Power Programme (CGPP), allows GDS to procure 22.5MWac of solar power for its Nusajaya Tech Park (NTP) data center campus in Johor.
The CGPP, overseen by Malaysia’s Energy Commission, encourages businesses to engage in renewable energy projects by signing VPPAs. As part of the program, a quota of 800MW of solar energy generation capacity is available, with developers eligible for a maximum capacity of 30MW, provided they secure an off-taker.
Cenergi, a subsidiary of UEM Group Berhad, will supply GDS with renewable credits from its forthcoming 29.99MWac large-scale solar farm in Kedah, scheduled for operation in Q4 2025. The collaboration supports GDS’s commitment to sustainability, contributing to its goal of achieving net-zero emissions and promoting environmental responsibility.
William Huang, Chairman and CEO of GDS, expressed enthusiasm about the partnership, stating, “This endeavor signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid.”
GDS’s NTP data center campus, initiated in 2021 and launched in August 2023, spans 30,310 sqm with an IT capacity of 69.9MW and features liquid cooling technology. The company is also developing another data center campus in Johor at YTL’s Green Data Center Park.
Cenergi Group CEO Hairol Azizi Tajudin commented on the collaboration, stating, “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 multiple data centers across major Chinese cities and Hong Kong. The company has committed to achieving Net Zero by 2030. Cenergi, known for its expertise in biogas and solar energy, is a major player in Malaysia with a portfolio that includes 33 biogas power plants and various solar initiatives. Other data center firms, including AirTrunk, have also engaged in PPAs through Malaysia’s CGPP to support sustainable energy practices.