DayOne and Blue Whale Energy to Study Data-Center-Anchored Virtual Power Plant in Singapore

DayOne has signed a non-binding Memorandum of Understanding with Singaporean Virtual Power Plant (VPP) operator Blue Whale Energy to study the feasibility of a distributed VPP in Singapore. The deal targets a real-time coordination layer that would link battery storage at DayOne's upcoming SG1 data center with batteries at suitable third-party commercial and industrial sites.

For grid practitioners, the core idea is straightforward: pool battery energy storage system (BESS) assets across multiple sites so they can adjust electricity drawn from the grid at key moments and behave as a single flexible resource. The partners claim that beyond better utilizing existing power infrastructure, the arrangement could unlock new capacity on the grid — no small claim in a market where every megawatt of headroom matters.

What does the MoU actually commit to?

Nothing binding yet. The initial work is a joint front-end engineering design (FEED) study covering:

• storage configuration
• safety
• metering and telemetry
• controls and operational safeguards
• potential arrangements with participating commercial and industrial facilities

The partners also plan to engage relevant authorities and market stakeholders to determine the applicable technical and market participation requirements — effectively figuring out the regulatory plumbing before anything gets built.

Who said what?

"Singapore's digital economy depends not only on computing infrastructure but also on the physical systems that support it, including energy," said Jamie Khoo, CEO of DayOne. "We believe data centers should play an active role in strengthening the broader power ecosystem they rely on and creating long-term value."

Khoo added: "Through this collaboration with Blue Whale Energy, we are exploring how a distributed VPP anchored at a data center could support greater grid flexibility alongside the continued growth of digital infrastructure."

Gabriel Lim, founder and CEO of Blue Whale Energy, framed the commercial logic: "Coordinated energy storage could create value by bringing together an anchor data center and suitable commercial and industrial sites." He said the two companies will "assess the technical, operational, and commercial arrangements required for a distributed VPP that shows what that future could look like, starting here in Singapore."

Demand Response participation on the table

The companies will also assess requirements for potential participation in Singapore's Demand Response and Interruptible Load programs. Both programs pay companies to cut electricity consumption during periods of market stress and grid contingencies, supporting power system reliability — a natural revenue and value stream for any aggregated BESS fleet.

What is SG1?

DayOne broke ground on SG1 in July last year, with commercial operations slated for early next year. The facility clocks in at 20MW across roughly 40,000 square meters (430,555 sq ft) of gross floor area — call it the footprint of about six football fields.

It's designed to support hybrid air and liquid cooling, and will reportedly be Singapore's first data center to use on-site fuel cells. DayOne has also locked in a ten-year Power Purchase Agreement with Sembcorp Power covering the campus's energy demand.

If the FEED study pans out, SG1's batteries would anchor a VPP stretching beyond the campus fence — a template that, if replicated, could turn data centers from pure grid load into dispatchable grid assets.