• Malaysia’s first “stable output” solar facility will combine 310 MWp of solar with 620 MWh of battery storage.
• The $2.76 billion project underpins Sarawak’s plan to reach 10 GW of generation capacity by 2030.
• A 200 MW green data centre park will anchor over $1 billion in foreign digital investment.

Sarawak bets on hybrid clean power

Malaysia’s Sarawak state has secured one of its largest private renewable energy investments with Founder Group Limited and Planet QEOS Sdn. Bhd. committing MYR1.16 billion ($2.76 billion) to a hybrid solar and storage complex in Baram. The development pairs a 310 megawatt-peak (MWp) ground-mounted solar farm with 620 megawatt-hours (MWh) of battery energy storage and is designed to deliver continuous, dispatchable power.

It will be the first project in Malaysia built specifically to provide “stable output” solar – energy firm enough to mimic baseload supply typically associated with gas or hydro plants. The scheme is a central pillar of the state-backed Baram DeepTech Energy Programme, a plan to transform Sarawak’s interior through advanced energy infrastructure.

Energy meets digital infrastructure

Beyond generation, the project will anchor a 200 MW Tier-4 data centre park on the same site. By colocating the facilities, the consortium aims to power energy-intensive digital operations directly with locally generated renewable electricity, avoiding reliance on fossil-heavy grids.

Officials project more than MYR1 billion in foreign direct investment linked to the data centre campus. For Sarawak, the bet is that clean power will underpin a digital services hub in a region seeking to diversify away from extractive industries.

Policy alignment and regional goals

The project’s scale dovetails with Sarawak’s strategy to lift installed generation to 10 gigawatts by 2030. The state is also pushing the creation of a Special Energy Zone in Baram to attract green industrial development and stimulate rural economic growth.

“The integration of dispatchable solar with storage positions Sarawak as a credible player in Southeast Asia’s clean energy and digital economy,” said a government official involved in the programme. While final permitting and a Power Purchase Agreement (PPA) remain to be secured, authorities view the project as a template for future large-scale renewable deployments.

Financing and execution

Founder Group, listed on NASDAQ and active across energy and information technology, is leading the consortium alongside Malaysia-based Planet QEOS. The group will structure financing and phase implementation once regulatory and commercial approvals are in place.

The investment comes at a time when regional governments are courting energy-linked digital infrastructure, from hyperscale data centres in Singapore to new green industrial clusters in Indonesia. Analysts say Sarawak’s ability to guarantee clean power at scale could determine whether it captures the next wave of digital foreign direct investment.

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Strategic implications for C-suite and investors

For corporate leaders, the project highlights a broader shift: renewable energy infrastructure is no longer seen as a stand-alone asset but as the foundation for new economic clusters such as cloud computing and artificial intelligence. Investors will note that securing stable renewable output through storage is becoming essential to anchor long-term digital deals.

The Sarawak project also illustrates a growing nexus between policy goals and capital allocation. By explicitly linking renewable deployment to a Special Energy Zone and digital infrastructure, the state is binding climate targets to industrial policy. That linkage is likely to appeal to both sovereign investors and global technology firms seeking resilient, low-carbon supply chains.

Southeast Asia’s wider relevance

The hybrid complex in Sarawak carries significance beyond Malaysia. Southeast Asia faces rising electricity demand, and competition to host data centres and advanced industries is intensifying. Governments in the region are weighing how to square grid stability with net-zero commitments.

If successful, the Sarawak model could offer a blueprint: combine large-scale renewables with storage to create reliable, bankable supply for high-demand digital assets. For multinationals navigating ESG disclosure and decarbonization targets, such developments may soon become a prerequisite for investment decisions across emerging markets.

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