DayOne, Sembcorp MoU covers APAC data center power

DayOne and Sembcorp Utilities signed a non-binding Memorandum of Understanding (MoU) as DayOne reported 962 MW in service and 1.3 GW under construction. The agreement covers power and energy solutions at DayOne data centers across Asia. It includes on-site infrastructure, generation, renewable supply and services. Neither side disclosed project locations, capital commitments, power volumes or implementation dates.

What does the MoU cover?

The companies say the MoU lays the foundation for a framework that would let the partners explore:

• Reliable and cost-competitive power solutions.
• Power generation and electrical infrastructure.
• Fuel supply and storage.
• Renewable energy solutions.
• Associated technical and operational services.

Its initial evaluation covers on-site power infrastructure and generation, renewable energy supply, and operations and maintenance services.

DayOne said the MoU forms part of its Bring-Your-Own-Power initiative. This program brings power planning into early development, then identifies and secures energy solutions. DayOne says the approach can reduce execution risk in increasingly constrained power markets. It also seeks greater certainty for customers as they scale. No model quantifies either benefit.

“Scaling digital infrastructure means thinking about the energy pathways powering it from the outset,” said Jamie Khoo, DayOne’s chief executive officer.

“Our approach is to secure the critical resources—including power, land, water, and connectivity—early, so we can execute with speed while building responsibly for the long term.

“Working with Sembcorp gives us an opportunity to explore integrated data center, power, and energy solutions as we continue to expand across the region.”

The statement links early resource planning to project execution. It does not specify which sites enter the study or what a future agreement would cover.

Gas and Related Services president and chief executive Koh Chiap Khiong linked artificial intelligence (AI) to parallel infrastructure growth:

“Powering AI requires energy infrastructure to grow alongside digital infrastructure.

“By working with DayOne early in the development of its projects, we can explore energy solutions that support its evolving requirements and continued growth across Asia.

“Together, we aim to help build the energy foundations needed to support the rapid growth of AI and digital infrastructure across the region.”

Both executives described exploration rather than secured supply. Neither statement provides project economics, emissions data or customer guarantees.

What does the existing PPA add?

DayOne and Sembcorp signed a 10-year Power Purchase Agreement (PPA) with Sembcorp Power last July. Reporting at the time said the energy would carry bundled renewable energy certificates (RECs). These could be sourced locally or imported through a grid-to-grid connection.

The MoU would extend that relationship into generation, electrical infrastructure, fuel supply and storage, and operational services, although the announcement provides no allocation, ownership or implementation structure. The announcement does not identify whether the PPA supply falls within the proposed framework.

How much capacity is DayOne targeting?

DayOne is preparing an Initial Public Offering (IPO) on Nasdaq, and its prospectus reported 962 MW of capacity in service on September 20, up from 675 MW in June. DayOne also reported 1.3 GW under construction, compared with 1.1 GW in June. It expects to deliver 1.3 GW by December 2028.

The target remains company guidance rather than completed capacity. The announcement gives no financing or power-supply details for that expansion.

What is DayOne developing in Malaysia?

DayOne operates two facilities in Johor, one at Nusajaya Tech Park and another at Kempas Tech Park, with 120 MW of combined capacity across both sites. The two sites’ 120 MW compares with DayOne’s 962 MW in-service portfolio.

Recent land purchases extend the footprint: DayOne acquired Selangor land from Mah Sing and bought 65 acres in Johor from Paragon Globe earlier this year. The announcement omitted purchase prices, zoning approvals and construction deadlines for either property.

In September, DayOne said it was exploring an on-site generation solution of up to 1.5 GW with NB Power Generation, a subsidiary of Malaysian utility TNB, for its developing Selangor data center. That work remains exploratory, with no construction award, financing package or supply contract disclosed.

Which recent deals frame Sembcorp’s position?

Sembcorp has signed several power agreements with data-center providers over recent years. Earlier this week, Sembcorp agreed to supply low-carbon power to Nxera Singapore’s data center, while its March agreement with Malkoha Pte commits the Meta subsidiary to construct, own and operate a 150 MW floating solar project in Singapore.

The Nxera announcement gave no power volume, price or start date. Neither announcement disclosed generation schedules or broader commercial terms. These agreements add context for Sembcorp’s data-center activity. They do not turn the DayOne MoU into a secured power contract.