ACWA Power has forged a significant partnership with Malaysia’s Tenaga Nasional Berhad (TNB) to implement renewable energy solutions under the country’s first Clean Energy Renewable Supply Scheme (CRESS). Signed in May 2025, this agreement will provide as much as 500 megawatts of clean energy. It is a historic step in Malaysia’s impending march towards decarbonizing this country’s growing digital infrastructure. The partnership will empower medium and high-voltage corporate customers to procure clean energy directly. They can leverage TNB’s vast transmission and distribution grid to do so.
The joint venture is estimated to total an investment of up to $10 billion from a wide range of Malaysian entities in partnership with ACWA Power. This strategic collaboration underscores a deep commitment to sustainability. It furthers ACWA Power’s overall objectives of decarbonising its Scope 1 and 2 emissions from its operations. ACWA Power collaborates with TNB and other industry players to bring clients along the sustainability journey. Combined, they improve energy efficiency and conservation, advance clean energy technologies and promote a sustainable approach.
Commitment to Sustainability
ACWA Power is committed to integrating renewable energy into every aspect of its operations. The firm’s stated goal is to focus on emissions directly connected to its operations. This means tackling emissions from things it doesn’t own or control. This initiative is in line with worldwide trends towards sustainable practices and further cements ACWA Power’s position as a pioneer in the energy industry.
Considering these goals, DayOne, a leader in the agreements and a key partner in them, highlighted sustainability as their priority. The CEO stated, “We are proud to lead by example in Malaysia through the country’s first CRESS agreement. Sustainability is core to how we build, operate and grow. At DayOne, we are not only transitioning our campuses to renewable energy — we are working to embed ESG [environmental, social and governance] principles into every part of our value chain.”
This statement underscores the importance of integrating sustainable practices into business operations, reflecting a growing recognition of environmental responsibilities among industry leaders.
Significance of CRESS
Malaysia’s new Ministry of Energy Transition and Water Transformation (PETRA) unveiled CRESS. We believe it’s a step toward creating an inclusive, equitable energy landscape that works for our entire country. It provides consumers with a direct line to renewable energy. This increases the deployment of clean energy resources, particularly in higher-quality industrial use cases such as data centers, which require a large, consistent supply of power.
This strategic partnership between ACWA Power and TNB is a clear response to the growing demand for innovative, green energy solutions in Malaysia. As TNB’s president and CEO Jamie McMillan put it, “This partnership with TNB is a very significant step on our decarbonization journey. It highlights the strategic and courageous partnership needed to power the AI-fueled digital economy. We’re working to do that sustainably, and at an order of magnitude.
These types of partnerships represent a pivotal moment for Malaysia’s energy sector, paving the way for innovation and development of clean technology in years to come.
Future Prospects
As private industry continues to make significant pledges to reach net-zero carbon footprints, programs like CRESS will be needed in greater numbers. TNB and ACWA Power have partnered to address the energy needs of the present generation. They’re not just staying ahead of the curve.
The signing of agreements in May 2025 is a big step for Malaysia to establish its energy transition initiatives. With investments of at least $10 billion, the potential economic and environmental impacts are huge. Megat Jalaluddin Megat Hassan from TNB remarked on the potential impact of this partnership: “As the first CRESS agreement to deliver up to 500 megawatts of green energy, this partnership is a powerful signal of how a strategic collaboration can unlock reliable and scalable clean energy solutions for Malaysia’s most demanding digital infrastructures, including hyperscale data centres.”