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UEM Group’s Subsidiary Inks VPPA Deal With China-Based GDS Holdings

KUALA LUMPUR: UEM Group Bhd’s subsidiary Cenergi SEA Bhd has signed a 21-year renewable energy virtual power purchase agreement (VPPA) with China-based GDS Holdings Ltd, a leading developer and operator of high-performance data centres in Asia.

GDS senior vice president for technology Verghese Jacob (second from left) and Cenergi group chief executive officer Hairol Azizi Tajudin (second from right) at the VPPA signing ceremony. The moment was witnessed by GDS Malaysia general manager Jimmy Yan (far left) and Cenergi chief business development officer Ir Kwok Yew Hoe (far right).

The agreement positions GDS among the first cohort of green power off-takers in Malaysia under the Corporate Green Power Program (CGPP), which Malaysia’s Energy Commission administers.

The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate off-takers in Peninsula Malaysia.

GDS has 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.

The renewable energy procured through this agreement will be supplied by Cenergi’s 29.99MWac large-scale solar photovoltaic farm in Kedah will be operational by the fourth quarter Q4) of 2025.

Cenergi group chief executive officer Hairol Azizi Tajudin said the company looks forward to a stronger partnership 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 are 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,” he said in a statement.

Synergy is Malaysia’s largest biogas player, solar power producer and diversified renewable energy developer, specialising in reducing carbon emissions by developing and investing in renewable energy and energy efficiency projects, making it a well-suited collaborator for GDS’s sustainability initiatives.

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 direct current (DC) technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage.

GDS chief executive officer William Huang said collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies the company’s 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 endeavour 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,” he said.

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

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