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GDS signs 21-year renewable energy agreement in Malaysia
Fri, 1st Mar 2024

High-performance data centre developer and operator GDS has entered into a 21-year renewable energy Virtual Power Purchase Agreement (VPPA) with Cenergi SEA Berhad (Cenergi), one of Malaysia's leading renewable energy developers. 

The agreement has placed GDS among the first corporations to become green power off-takers in Malaysia under the Corporate Green Power Program (CGPP) overseen by the country's Energy Commission. The CGPP permits securing a cumulative total of 800MWac of solar power by corporate off-takers in Peninsular Malaysia. GDS has successfully acquired 22.5MWac of renewable energy for its Nusajaya Tech Park Data Center Campus in Johor.

The partnership with Cenergi enables GDS to claim Renewable Energy Credits, marking a significant step towards the aim of achieving net zero carbon emissions by 2030. The renewable energy procured from this arrangement will be generated by Cenergi's 29.99MWac large-scale solar photovoltaic farm, located in the state of Kedah, Malaysia. The farm is anticipated to be operational by the fourth quarter of 2025.

GDS anticipates reducing its carbon footprint by up to 38,000 tonnes of CO2 equivalent per year owing to this partnership. This outcome would equate to the elimination of CO2 emissions from about 8,400 petrol-powered vehicles or the energy consumption of around 7,400 homes per year. Combined with GDS's existing green data centre technologies, this manoeuvre forms the base for reducing carbon emissions further and increasing the usage of renewable energy.

William Huang, the Chairman and CEO of GDS, stated: "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 Data Center Campus and various ongoing projects, this endeavour signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid.

"This partnership not only underscores our dedication to environmental stewardship but also reinforces our position as leaders in driving sustainable innovation within our sector," said Huang.

Hairol Azizi Tajudin, Group CEO of Cenergi, expressed excitement about partnering with GDS in Malaysia's renewable energy initiatives, emphasising their mutual commitment to sustainability. Hairol Azizi Tajudin added: "We are 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 are not just helping them reach their net-zero emissions target but also contributing to Malaysia's larger plan for a greener energy mix. We believe in the positive impact of such partnerships in creating a more sustainable future for all," said Hairol Azizi Tajudin. 

The renewable energy procured from Cenergi's solar farm aligns with Malaysia's goal of having 31% renewable energy in its national energy mix by 2025, as outlined in the National Energy Transition Roadmap (NETR).