ACWA Power has made an aggressive move to accelerate the use of renewable energy across its portfolio. Alongside Malaysia’s Tenaga Nasional Berhad (TNB), they are working to turn this vision into reality. In May 2025, the partnership signed an initial memorandum of understanding (MoU) and strategic agreements. It would lever up to $10 billion in renewable energy and complex clean energy projects, sending a powerful signal that the best clean energy solutions deserve to be developed in the region.
This collaboration marks a groundbreaking step in Malaysia’s energy sector as it introduces the nation’s first Clean Energy Renewable Supply Scheme (CRESS). CRESS, developed by the corporate consumers to clean energy, was initiated by Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA). It accomplishes this by taking advantage of TNB’s established grid infrastructure for medium and high-voltage access.
A Commitment to Sustainability
ACWA Power’s main objective is Scope 1 and 2 emissions reduction. Simultaneously, it enables their clients to decarbonize their digital infrastructure. As a result, TNB and the company are strategically aligning to provide up to 500 megawatts of renewable energy. This joint initiative will promote the resilience of the local grid while simultaneously reducing carbon footprints from multiple sectors.
“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,” stated an official from DayOne. “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 commitment speaks to ACWA Power’s long-term sustainability vision, which aims to establish the company as a frontrunner in the region’s renewable energy sector.
Strengthening Digital Infrastructure
The partnership between ACWA Power and TNB is not only focused on generating renewable energy but aims to bolster the digital infrastructure necessary for modern enterprises. In this way, TNB improves overall grid resilience and strengthens energy infrastructure by building high-performance workloads and cloud capabilities. This investment will help new technologies work together to operate cohesively and smoothly.
“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,” emphasized a TNB representative.
In addition to this effort, DayOne finalized its fourth electricity supply agreement (ESA) with TNB in October of 2024. This MOU would see the creation of hyperscale data centers in Malaysia. It dovetails beautifully with the country’s ambitions for digital transformation.
Decarbonisation for Future Growth
The strategic partnership is a sign of the incredibly ambitious collaboration to come that we hope will help the fervent AI-driven digital economy thrive sustainably. Jamie Khoo, CEO of DayOne, highlighted the significance of this alliance: “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.”
This collaboration is a reflection of our deep commitment to the environment. More importantly, it’s an example of how intentional collaborations can drive creativity and development within the rapidly-growing renewable energy industry.
