ACWA Power, a global leader in sustainable energy solutions, has entered into a significant partnership with Malaysia’s Tenaga Nasional Berhad (TNB) aimed at advancing the country’s renewable energy landscape. The partnership, including a Memorandum of Understanding (MoU) and strategic agreements, was signed in May 2025. This commitment brings with it a promise of up to 500 megawatts of green energy. It includes $10 billion in total investments.
The collaboration seeks to reduce Scope 1 and 2 emissions from facilities ACWA Power operates and controls. Further, it aims to tackle emissions that result from activities outside of a company’s direct operations. This strategic focus dovetails with ACWA Power’s larger goal of deploying renewable energy across its business activities.
Focus on Decarbonisation
ACWA Power is a leader in ensuring its clients can decarbonize their digital infrastructure. This initiative is part of Malaysia’s transition to a more sustainable energy source. The company is aware that the integration of Environmental, Social and Governance (ESG) principles into all areas of business operations is a necessity.
Jamie Khoo, CEO of DayOne, reflected on the significance of the partnership, stating, “This partnership with TNB marks a bold step forward in our decarbonisation journey. It reflects the ambitious collaboration needed to power the AI-driven digital economy sustainably and to do so at scale.”
The contracts mark the introduction of Malaysia’s first Corporate Renewable Energy Supply Scheme (CRESS). Introduced by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA), CRESS facilitates direct access for medium and high-voltage corporate consumers to clean energy via TNB’s extensive grid system. We’re looking forward to seeing this initiative accelerate businesses large and small across the country double down on their commitment to renewable energy.
Strategic Collaboration for Clean Energy Solutions
Together, the strategic partnership between ACWA Power and TNB exemplifies the power of collaboration. Combined, they hold the keys to powerful reliable and scalable clean energy solutions. Malaysia’s Energy Transition and Future Development Megat Jalaluddin Megat Hassan underscored this idea, focusing on how the newly drawn agreement may pivot Malaysia’s energy sector and market.
“This partnership is a powerful signal of how a strategic collaboration can unlock reliable and scalable clean energy solutions.” – Megat Jalaluddin Megat Hassan
Beyond the three recent agreements, DayOne recently executed its fourth electricity supply agreement with TNB in October 2024. This agreement is a strong show of support for the Green Lane Pathway initiative and the One-Stop Center for data centers. This is further aligned with DayOne’s deep commitment to sustainability and innovation in the energy ecosystem.
Enabling Future Energy Needs
As part of this initiative, TNB is committed to providing renewable energy. They are equally concerned with improving grid resilience and developing the infrastructure required by an expanding digital economy. This means reinvesting in the kind of energy backbone required to support AI, cloud services and HPC workloads.
“TNB is proud to lead in this transition — not only by supplying renewable energy but by building the grid resilience, energy infrastructure and digital backbone that enable AI, cloud and high-performance workloads.” – TNB
Together, ACWA Power and TNB are working to develop a new, more ambitious, transformative electricity generation approach to serve the needs of the Malaysian people. This partnership is strategic in realizing sustainability goals.
