AirTrunk starts Malaysia solar VPPA for data centres

AirTrunk and ib vogt have started commercial operations at a 29.99 MWac solar project in Malaysia, which supports AirTrunk's Malaysian operations under a Virtual Power Purchase Agreement.

According to the companies, the arrangement is the first renewable VPPA for a data centre under Malaysia's Corporate Green Power Programme.

Developed by ib vogt, the solar facility is now generating electricity for delivery into Malaysia's grid under a long-term agreement linked to AirTrunk's electricity use in the country.

The project sits at the intersection of two fast-growing sectors in the region: data centres and renewable energy. As power demand rises, operators of cloud and artificial intelligence infrastructure are seeking more low-carbon electricity supplies, while governments are looking for private-sector investment to expand renewable generation.

Malaysia's Corporate Green Power Programme is designed to add new renewable energy supply to the national system through corporate procurement arrangements. Under this agreement, AirTrunk receives the renewable energy attributes from the solar project while the electricity itself is supplied into the grid.

AirTrunk operates data centres across Asia-Pacific and the Middle East, serving cloud computing, artificial intelligence and other data-intensive customers. The Malaysian project forms part of its target to match 100% of electricity consumption across its data centre platform with renewable energy by 2030.

For ib vogt, the project adds to its work in Malaysia and the wider Asia-Pacific region. Its regional team has expanded since 2015 and now includes about 180 employees across markets including Malaysia, Indonesia, the Philippines, Korea, Thailand and Vietnam.

Growing demand

The link between renewable generation and data centre consumption has become more prominent as technology groups and infrastructure operators expand capacity across South-East Asia. Facilities supporting cloud services and AI systems require large, steady electricity supplies, increasing pressure on grids and on companies' decarbonisation plans.

That has pushed operators to explore long-term procurement structures such as power purchase agreements and virtual power purchase agreements. These mechanisms can help underwrite new renewable projects while allowing large electricity users to align part of their consumption with renewable generation.

Malaysia has been trying to attract digital infrastructure investment while increasing the share of cleaner power in its energy mix. The companies described the project as supporting both aims by linking new solar generation with the energy demand of a major data centre operator.

David Ludwig commented on the project after operations began. "At ib vogt, our purpose is to change the world by making decarbonisation a reality for our partners. We are proud to have delivered this project safely and responsibly, adhering to our deeply held belief that culture, anchored in ownership and integrity, is the most powerful enabler of strategy. This achievement reinforces our commitment to leaving the planet in a better state than we found it while fostering inclusive economic development in the communities where we operate," said David Ludwig, Chief Executive Officer, ib vogt APAC.

Energy strategy

The project adds new renewable energy capacity to Malaysia's grid. That is significant because corporate clean-energy deals are often scrutinised for whether they support additional generation rather than simply reassigning output from existing projects.

AirTrunk presented the agreement as part of its broader energy-sourcing strategy for data centre operations in the region. The company has been expanding across markets where regulators, utilities and large energy users are working out how to support rising digital demand without increasing emissions at the same pace.

Damien Spillane described that position in a statement on the milestone. "This milestone demonstrates how digital infrastructure growth and the energy transition can advance together. As demand for cloud and AI infrastructure accelerates across the region, securing renewable energy supply is critical to supporting sustainable digital growth. This long-term collaboration contributes new renewable energy capacity to Malaysia's grid while supporting AirTrunk's commitment to match 100% of electricity consumption across our data centre platform with renewable energy by 2030," said Spillane.

ib vogt identified Malaysia as a key hub in its Asia-Pacific portfolio. Its local project pipeline includes the 116 MWp Coara Marang Solar Plant in Terengganu and two 40 MWp CGPP projects in Kedah.

With commercial operations now under way at the 29.99 MWac project, the AirTrunk agreement is among the early examples of how Malaysia's green power programme is being used by large digital infrastructure users.