DayOne & Sembcorp explore power deals for Asia data centres

DayOne Data Centres and Sembcorp Utilities have signed a memorandum of understanding to explore power and energy solutions for data centre developments in Asia, centred on DayOne's regional expansion.

Under the arrangement, the companies will assess options for agreed projects, including on-site power infrastructure and generation, renewable energy supply, and operations and maintenance services.

The work is tied to DayOne's "Bring Your Own Power" approach, which puts power planning at the start of data centre development. The aim is to identify and secure energy sources earlier in the build process as power availability tightens in several markets.

The framework will also cover the feasibility and business case for potential energy projects, as well as routes to implementation. Areas under review include fuel supply and storage, electrical infrastructure, renewable energy, and related technical services.

The agreement links a regional data centre operator with an energy supplier at a time when access to electricity has become a central issue for digital infrastructure developers. Demand for new data centre capacity has risen alongside investment in artificial intelligence and cloud computing, while access to land, electricity, and grid connections has become more constrained in parts of Asia.

Jamie Khoo, Chief Executive Officer of DayOne, outlined the company's rationale for the arrangement.

"Scaling digital infrastructure means thinking about the energy pathways powering it from the outset. 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," said Khoo.

Sembcorp's gas and related services division is part of the wider Sembcorp Industries group. Its role in the agreement reflects a broader shift among infrastructure developers and utilities towards closer coordination on power procurement and generation for large industrial users.

Koh Chiap Khiong, President & Chief Executive Officer, Gas and Related Services, Sembcorp, said: "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."

Regional footprint

DayOne, headquartered in Singapore, develops and operates data centres across 10 markets in Asia Pacific and Europe. Its current operations span Singapore, Malaysia, Indonesia, Thailand, Japan, Hong Kong, Finland, and Spain.

The memorandum also builds on existing ties between the two companies in Singapore. DayOne already has a power purchase agreement with Sembcorp for its SG1 data centre, where operations are set to be fully covered by renewable energy.

Elsewhere in the region, DayOne has been putting in place separate renewable energy arrangements to support its data centre estate. In Malaysia, it announced renewable energy supply agreements covering about 1.5GWp of solar capacity and 2.2GWh of battery energy storage under the Corporate Renewable Energy Supply Scheme. In Thailand, it signed a power purchase agreement to supply renewable energy to its Chonburi Tech Park data centre campus.

These moves form part of DayOne's target to reach 100% renewable energy by 2030 where market conditions permit. That places the company among a growing number of data centre operators seeking to tie expansion plans to cleaner electricity supply, although execution remains dependent on local regulation, grid access, and project economics.

Power constraint

Electricity has become one of the main limiting factors for new data centre construction in several Asian markets, particularly in locations popular with hyperscale customers. Developers are increasingly seeking direct arrangements with utilities, renewable generators, and storage providers to reduce uncertainty over supply.

For DayOne, the agreement with Sembcorp is intended to test whether integrated planning can provide greater certainty over how future sites are powered. The companies plan to jointly evaluate reliable, cost-competitive power solutions for projects they agree to study.

That focus on early-stage planning reflects a wider industry response to a bottleneck that is no longer confined to connectivity and land. In many markets, the key question is now whether sufficient electricity can be secured on acceptable terms before construction begins.

The framework will also allow both parties to explore potential implementation pathways for energy solutions linked to selected projects.