Chinese data center developer GDS has launched a pilot project with EcoCeres to trial the use of hydrotreated vegetable oil (HVO) as a replacement for its diesel-powered backup generation units.

The deal is one of the first instances of the use of HVO within the Chinese market, and will see EcoCeres supply HVO to a GDS data center in North China, to be used as a drop-in replacement in its backup generation units.

“Partnering with GDS shows how HVO can help decarbonize mission-critical infrastructure without compromising reliability,” said Matti Lievonen, CEO of EcoCeres. “By turning used cooking oil into renewable backup power for GDS, we are putting the circular economy concept into practice and proving how HVO can empower low-carbon computing power and enable a greener future. This pilot is an important first step towards large-scale adoption of waste-based HVO in China’s rapidly growing IDC sector.”

HVO, also known as renewable diesel, is produced from “renewable” raw materials, including animal fats from the food sector and used cooking oils. It acts as a drop-in replacement for diesel and can be deployed without modifications to the existing generation units. It also has the ability to be blended with diesel and is suitable for use across both cold and warm weather climates.

It has seen a growth in uptake across the data center sector over recent years, with the majority of deployments within the European market. For example, last April, Verne announced plans to use HVO to power its backup units at its data center in Farringdon, London. The decision follows a similar partnership in Finland, where Verne partnered with Neste, which will supply HVO to all of Verne’s Finnish data centers.

Other examples of HVO deployment include AWS in Sweden, Vantage in Wales, and Stack Infrastructure in Norway.

GDS is one of China’s biggest digital infrastructure firms. In March, it reported $1.6 billion in revenue for 2025, rising by 10.8 percent year-over-year. Outside of China, the firm has spun out its operations under the brand DayOne following a rebrand in January of last year.

Backed by Bain Capital and Kerogen Capital, EcoCeres is a Hong Kong-based renewable and biofuel producer. As well as HVO, the company also produces sustainable aviation fuel.