DayOne, Blue Whale to study Singapore virtual power plant

DayOne Data Centres and Blue Whale Energy have signed a memorandum of understanding to study a distributed virtual power plant in Singapore. The proposed project would link battery storage at DayOne's planned SG1 data centre with batteries at other commercial and industrial sites.

The study will examine whether a distributed battery energy storage network can be coordinated in real time so multiple sites operate as a single resource for the electricity grid. It will focus on linking storage at the SG1 facility with suitable third-party locations.

The plan reflects growing pressure on electricity systems as demand from artificial intelligence and cloud computing rises. Data centre operators and grid managers are looking for ways to make better use of existing power infrastructure, especially during periods of peak demand.

A distributed virtual power plant, or VPP, typically combines energy assets at different locations and manages them through software and control systems. In this case, the aim is to pool battery storage across several sites so electricity drawn from the grid can be adjusted when needed.

According to the companies, the approach could help reduce strain on the grid at key moments and may limit the need for some network upgrades that would otherwise be required to meet peak demand. It would also test whether a data centre can act as an anchor site in a wider energy management network.

Study scope

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

The companies also plan to engage with authorities and market stakeholders to understand technical requirements and the conditions for taking part in relevant market schemes. Those discussions are expected to address how a distributed system of this kind would fit within Singapore's existing electricity market rules.

Another part of the assessment will examine potential participation in Singapore's Demand Response and Interruptible Load programmes. These programmes are designed to encourage businesses to cut electricity use during periods of market stress and grid contingencies to support system reliability.

That element of the study will depend on applicable market rules and regulatory approvals. It also highlights a broader question facing data centre operators in Singapore and other constrained markets: how to add digital infrastructure without placing disproportionate pressure on power networks.

Data centre role

DayOne is based in Singapore and operates data centres across Asia Pacific and Europe. Its footprint spans 10 markets, including Singapore, Malaysia, Indonesia, Thailand, Japan, Hong Kong, Finland and Spain.

DayOne's SG1 development is set to become the anchor asset in the proposed study. By connecting that site's battery storage to systems installed elsewhere, the partners want to test whether a cluster of commercial and industrial assets can respond to grid conditions in a coordinated way.

Blue Whale Energy, also based in Singapore, specialises in battery energy storage systems and VPP aggregation services. Its role in the study will centre on the technical, operational and commercial arrangements needed to combine multiple battery assets into one coordinated platform.

Jamie Khoo, chief executive officer of DayOne, framed the work as part of a wider debate about the infrastructure that underpins digital growth.

"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," Khoo said.

"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," he said.

Blue Whale Energy said the project will test whether a central data centre site can be combined with other facilities in a way that creates a workable commercial and operational model.

"Coordinated energy storage could create value by bringing together an anchor data center and suitable commercial and industrial sites," said Gabriel Lim, founder and chief executive officer 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," Lim said.