DayOne Data Centres and Blue Whale Energy have signed a Memorandum of Understanding (MOU) to explore the feasibility of a Distributed Virtual Power Plant (VPP) in Singapore. This initiative will link battery storage at DayOne’s upcoming SG1 data centre with third-party commercial and industrial sites, creating a flexible resource for the grid.
As demand for AI and cloud services grows, the collaboration seeks to optimise grid capacity during peak electricity use by pooling battery storage across multiple locations. This approach could unlock new capacity and reduce the need for costly grid upgrades. Jamie Khoo, CEO of DayOne, stated, “We believe data centres should play an active role in strengthening the broader power ecosystem they rely on and creating long-term value.”
The initial phase will involve a joint engineering design study focusing on storage configuration, safety, and operational safeguards. Gabriel Lim, CEO of Blue Whale Energy, noted, “Through this MOU with DayOne, we will assess the technical, operational, and commercial arrangements required for a Distributed VPP.”
The companies also plan to engage with authorities and market stakeholders to understand technical and market participation requirements. They will explore participation in Singapore’s Demand Response and Interruptible Load programmes, which incentivise reduced electricity consumption during market stress.
This collaboration could pave the way for enhanced grid flexibility and support the continued growth of digital infrastructure in Singapore.
