GDS Among Malaysia’s First Approved Green Power Offtakers Under the CGPP Initiative

GDS SVP Technology Verghese Jacob (second from left) and Cenergi Group CEO Hairol Azizi Tajudin (second from right) at VPPA signing ceremony. The moment was witnessed by GDS Malaysia General Manager Jimmy Yan (far left), and Cenergi Chief Business Development Officer (CBDO), Ir. Kwok Yew Hoe (far right).

GDS, a leading developer and operator of high-performance data centers in Asia, has reinforced its commitment to sustainability by establishing a 21-year renewable energy Virtual Power Purchase Agreement (VPPA) with Malaysia’s solar power producer and diversified renewable energy developer, Cenergi SEA Berhad (Cenergi).

The agreement, signed on 2nd February 2024, positions GDS among the first cohort of green power offtakers in Malaysia under the Corporate Green Power Program (CGPP) which is administered by Malaysia’s Energy Commission. The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate offtakers in Peninsula Malaysia. GDS has successfully subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park Data Center Campus in Johor.

The partnership with Cenergi empowers GDS to claim Renewable Energy Credits, facilitating reductions in greenhouse gas emissions and advancing its target of achieving net-zero carbon emissions by 2030.

Cenergi, a subsidiary of UEM Group Berhad, is a premier sustainable energy solutions company specializing in reducing carbon footprint through investment in Renewable Energy and Energy Efficiency projects. Cenergi is currently one of Malaysia’s diversified renewable energy developers and the country’s largest biogas player making it a well-suited collaborator for GDS's sustainability initiatives.

The renewable energy procured through this agreement will be supplied from Cenergi's 29.99MWac large-scale solar photovoltaic farm that will be located in the state of Kedah, Malaysia and is expected to be operational by 4Q2025.

Through this collaboration, GDS anticipates a reduction in its carbon footprint by up to 38,000 tonnes of CO2 equivalent per year, which is equivalent to eliminating CO2 emissions from approximately 8,400 petrol-powered passenger vehicles driven in a year and 7,400 homes' electricity use for one year. Combined with GDS's existing green DC technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage.

William Huang, Chairman and CEO of GDS, said, "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 endeavor 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."

Hairol Azizi Tajudin, Group Chief Executive Officer of Cenergi, said, “We’re 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're 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.”

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

¹Based on US EPA GHG Equivalencies Calculator