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IOI Corporation and Tenaga Nasional Berhad plan a 500 MWac solar project paired with a 250 MW/1,000 MWh battery in Negeri Sembilan, Malaysia. The project is intended to support renewable electricity supply to DayOne data centers under a 21-year offtake arrangement, but its construction schedule and final project details have not been announced.
IOI Corporation and Tenaga Nasional Berhad (TNB) plan to build a 500 MWac solar project with a 1 GWh battery system in Bahau, Negeri Sembilan, to supply renewable electricity to DayOne’s data centers in Malaysia. The project is planned under Malaysia’s Corporate Renewable Energy Supply Scheme, linking a large-scale generation and storage development with a long-term corporate power purchase arrangement.
The proposed project would occupy about 1,300 acres and pair a 500 MWac photovoltaic plant with a battery rated at 250 MW/1,000 MWh. IOI, a major integrated palm oil producer, is developing it with TNB, Malaysia’s largest electricity utility, and a consortium of small and medium-sized enterprises whose members have not been identified in the report.
IOI said the project would be supported by TNB’s long-term renewable energy offtake agreement with DayOne Data Centres Limited, a Singapore-headquartered digital infrastructure company. Under the arrangement, DayOne is expected to procure up to 500 MWac over 21 years for its Malaysian data center operations. The parties announced that offtake agreement on June 11, 2025.
The planned development is IOI’s first large-scale renewable energy investment under CRESS, which allows corporate electricity users to procure renewable power from independent developers through Malaysia’s national grid. The project is described as planned; the source report does not provide a construction start date, a target for commercial operation, or confirmation that work has begun.
Powering Malaysia’s Data Center Growth
The project would connect a substantial renewable generation asset and battery system to electricity demand from data centers, facilities that require large and continuous power supplies. The planned 21-year offtake period gives the development a named corporate buyer and a long-term supply framework, while the battery is intended to form part of the project’s approach to delivering power from solar generation.
Its progress will also test how well CRESS can support private investment in grid-connected renewable electricity. Malaysia’s growing data center sector has prompted concerns about electricity demand, grid capacity, water availability and the availability of dispatchable generation. The project adds planned capacity, but the announcement alone does not show how much electricity it will deliver at any particular time or how it will affect grid reliability.
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CRESS Rules and Earlier Projects
Malaysia introduced CRESS to let corporate consumers obtain renewable electricity from independent developers using the national grid. The framework is intended to attract private capital into renewable generation and support lower-carbon power procurement by energy-intensive businesses. Its commercial terms matter because developers and buyers must account for the cost of using the grid as well as the price of renewable electricity.
In September 2026, Malaysia revised the scheme to include a fixed system access charge of MYR 0.14 per kWh for qualifying firm renewable supply projects and a minimum 10-year contract between developers and corporate consumers. To qualify for the reduced charge, projects must begin commercial operations by the end of 2028. At the time, 11 developers and eight corporate consumers had registered projects totaling about 3.15 GW.
The IOI-TNB plan follows other proposed supply for data centers. In August 2025, clean energy company Gentari and engineering group Gamuda announced plans to develop 1.5 GW of solar capacity, alongside battery storage, for hyperscale data centers under CRESS. Those figures describe announced plans, not necessarily operating capacity.
““The project will be supported by TNB’s long-term renewable energy offtake agreement with DayOne Data Centres Limited, a leading global digital infrastructure platform headquartered in Singapore.””
— IOI Corporation
Project Schedule and Delivery Details
The available announcement does not state when construction will start, when the solar plant or battery will enter commercial operation, or what milestones must be met before work begins. The project’s financing, final development structure and the identities of the participating small and medium-sized enterprises are also not specified.
It is not clear how the battery will be dispatched, how much power DayOne will take in practice, or how the project’s output will be matched to data center demand through the grid. The reported 500 MWac procurement is an expected maximum under the offtake agreement, not confirmation that DayOne will receive that amount continuously. The source also does not say whether the project has secured all approvals or qualifies for the revised CRESS access charge.
Construction and CRESS Milestones
The next useful updates would be confirmation of project approvals, financing, construction commencement and a target commercial operation date. Those details would show whether the plan is advancing toward delivery and whether it can meet the CRESS condition for qualifying projects to begin commercial operations by the end of 2028.
Further information from IOI, TNB or DayOne could clarify the power delivery structure, the battery’s operating role and how supply will be coordinated with Malaysia’s grid. Until those details are published, the development remains a major planned solar-and-storage project rather than operating capacity.
Key Questions
Where is the planned solar and battery project?
It is planned for about 1,300 acres in Bahau, Negeri Sembilan, Malaysia.
How large is the solar and storage system?
The proposal combines a 500 MWac solar photovoltaic plant with a battery rated at 250 MW/1,000 MWh.
Who is expected to buy the renewable electricity?
DayOne Data Centres is expected to procure up to 500 MWac over 21 years under an offtake arrangement supported by TNB.
Has construction started, and when will the project operate?
The source report describes the development as planned and does not provide a construction start date or commercial operation date.
What is CRESS?
Malaysia’s Corporate Renewable Energy Supply Scheme allows corporate electricity consumers to procure renewable power from independent developers through the national grid.
Source: ess-news.com
