Gamuda Energy and Gentari Renewables have partnered to develop up to 1.5 GW of solar and battery energy storage system (BESS) projects in Malaysia, aimed at supplying hyperscale data centers. The initiative responds to growing demand from the country’s digital economy, with data center power needs expected to exceed 5 GW by 2035.

The projects will be implemented under the Corporate Renewable Energy Supply Scheme (CRESS), introduced in 2024, which allows corporations to directly procure renewable power while paying grid access charges. Malaysia currently has 2GW of installed solar capacity, accounting for 5 percent of total capacity, and is targeting 40 percent renewable generation by 2035.

Gamuda has been expanding its energy and data centre portfolios, with projects including the 197.5 MW Ulu Padas Hydroelectric Dam in Sabah and a 390-acre data centre campus near Kuala Lumpur. Gentari, the clean energy arm of Petronas, is building a global renewable portfolio exceeding 8 GW and is actively targeting the data centre and telecommunications sectors as key offtakers.