ITC Properties, a real estate firm based in Hong Kong, has signed a memorandum of cooperation to build a 1GW data center at Yangkou Port, roughly 145km (91 miles) north of Shanghai.

The memorandum, signed with the Jiangsu Rudong Yangkou Port Economic Development Zone Management Committee, says that the data center would be developed in phases over five years, with the first phase offering 200MW of capacity.

It also says that the pair will study the feasibility of establishing renewable energy facilities to power the campus.

But the memorandum is not legally binding.

The port’s management committee recently inked another agreement with China Telecom, which would see the latter build and operate a 200MW data center at the port.

ITC Properties does not have prior experience in the data center space, and its portfolio consists of residential, commercial, and office buildings. It has properties in Hong Kong, Macau, mainland China, Canada, and the UK.

Yangkou, which means mouth of the ocean, is located in the eastern Chinese coastal province of Jiangsu.