Kuala Lumpur, August 25, 2025 – Gentari Sdn Bhd, the clean energy subsidiary of Petronas, has announced a strategic partnership with infrastructure powerhouse Gamuda Bhd to jointly develop 1.5 gigawatts (GW) of renewable energy capacity. The project, which will deploy large-scale solar photovoltaic (PV) power plants integrated with battery energy storage systems (BESS), marks one of the most ambitious renewable energy collaborations in Malaysia to date.
The initiative will be implemented under the government’s Corporate Renewable Energy Supply Scheme (CRESS), a framework designed to accelerate clean energy adoption by linking large-scale renewable projects directly with corporate and industrial offtakers. In this case, the targeted beneficiaries are hyperscale data centres (DCs)—critical infrastructure that supports cloud computing, artificial intelligence, and digital services.
Rising Demand from Digital Infrastructure
Malaysia’s rapidly expanding digital economy is driving a surge in demand for reliable and sustainable power. Hyperscale data centres, which are capital-intensive facilities operated by some of the world’s largest technology firms, are projected to require over 5 GW of stable energy supply by 2035. Ensuring that this demand is met with renewable sources has become a pressing priority, both to maintain energy security and to meet the nation’s net-zero carbon commitments.
“Malaysia’s digital economy is growing rapidly, bringing with it rising demand for reliable and sustainable power,” said Low Kian Min, Chief Renewables Officer of Gentari. “Expanding renewable energy capacity is not only critical for meeting this demand but also key to driving long-term growth. With this partnership, we are positioning Malaysia at the forefront of the clean energy transition.”
Gentari currently manages over 8 GW of installed and under-construction renewable capacity across its operating markets, underscoring its role as a key regional player in energy transition solutions.
Attracting Global Investments
For Gamuda, the partnership is more than just an infrastructure investment—it is also a tool for strengthening Malaysia’s position in the global digital economy. “The availability of clean energy is a critical factor for attracting foreign direct investment and retaining the presence of the world’s leading technology companies in Malaysia,” said Joshua Kong Sing Hoe, Director of Gamuda Energy. “This landmark partnership sets the model for future collaborations aimed at powering sustainable development across industries, while supporting the national net-zero ambition.”
Industry analysts note that access to competitively priced green energy is increasingly a decisive factor for global tech giants when choosing locations for hyperscale data centres. With neighbouring countries also vying for these investments, Malaysia’s ability to provide clean and reliable power could prove pivotal in attracting multinational firms.
A Model for Future Collaborations
The Gentari-Gamuda collaboration signals a broader shift in how Malaysia is aligning industrial growth with environmental responsibility. By pairing solar generation with advanced battery storage systems, the project will be able to supply stable, round-the-clock renewable power—addressing the intermittency challenges that have historically constrained large-scale solar projects.
As the government pushes for deeper decarbonisation across the energy sector, this initiative is expected to set a new benchmark for public-private partnerships that leverage both infrastructure expertise and energy transition capabilities. If successful, the model could be replicated across other industries, further embedding renewable energy into Malaysia’s long-term growth narrative.
The Ledger Asia’s view: The Gentari-Gamuda alliance underscores how Malaysia’s energy strategy is becoming tightly interwoven with the future of its digital economy. With hyperscale data centres set to anchor billions of dollars in investment, securing green energy supply is no longer just an environmental imperative but an economic necessity. The partnership, if executed at scale, could cement Malaysia’s status as a regional leader in both renewable energy and digital infrastructure.
