APAC data center developer DayOne has signed a deal with Singaporean Virtual Power Plant (VPP) company Blue Whale Energy to study the feasibility of a distributed VPP in Singapore.

The companies signed a non-binding Memorandum of Understanding (MoU) to explore a real-time solution to coordinate a distributed battery energy storage system (BESS) network linking battery storage at DayOne's upcoming SG1 data center with suitable third-party commercial and industrial sites. This, the companies claim, will allow the assets to work together as a single flexible resource for the grid.

The proposed VPP would pool BESS assets across multiple sites to adjust electricity drawn from the grid at key moments. The partners said that beyond better utilizing existing power infrastructure, it could also unlock new capacity on the grid.

“Singapore's digital economy depends not only on computing infrastructure but also on the physical systems that support it, including energy. We believe data centers should play an active role in strengthening the broader power ecosystem they rely on and creating long-term value,” said Jamie Khoo, CEO of DayOne. “Through this collaboration with Blue Whale Energy, we are exploring how a distributed VPP anchored at a data center could support greater grid flexibility alongside the continued growth of digital infrastructure.”

“Coordinated energy storage could create value by bringing together an anchor data center and suitable commercial and industrial sites,” said Gabriel Lim, founder and CEO of Blue Whale Energy. “Through this MoU with DayOne, we will assess the technical, operational, and commercial arrangements required for a distributed VPP that shows what that future could look like, starting here in Singapore.”

The initial work on the program is expected to involve a joint front-end engineering design study covering storage configuration, safety, metering and telemetry, controls, operational safeguards, and potential arrangements with participating commercial and industrial facilities.

The partners also said that they intend to engage relevant authorities and market stakeholders and, when appropriate, to determine the applicable technical and market participation requirements. The companies also said they will assess the requirements for potential participation in Singapore’s Demand Response and Interruptible Load programs. The programs incentivize companies to reduce electricity consumption during periods of market stress and grid contingencies to support power system reliability.

DayOne broke ground at its SG1 data center in July of last year, with commercial operations slated for early next year.

The 20MW facility will span about 40,000 square meters (430,555 sq ft) of gross floor area. It is expected to support hybrid air and liquid cooling technologies and will reportedly be Singapore’s first data center to utilize fuel cells on site. The company also signed a ten-year Power Purchase Agreement with Sembcorp Power to cover the data center's energy demand.