Malaysian property developer and investment holding company Tanco has signed a Memorandum of Understanding (MoU) with China Mobile International to consider developing a 50MW data center in Port Dickson, located in the Malaysian state of Negeri Sembilan.

“The MoU is to facilitate and support the company’s efforts to develop strategic relationships with a reputable, capable, experienced, and global leading brands to expand the business activities of Tanco into other sectors (such as data centers),” the company said.

The pair will have two years to sign a definitive agreement regarding the data center.

A MoU is a preliminary, non-binding agreement signed between two parties. It is similar to a Letter of Intent (LoI).

Tanco is a major property developer in Malaysia. The company was incorporated in 1958 and got its start in the rubber and palm oil industry. It is unclear whether it has prior experience with building, developing, or operating data centers.

Port Dickson is also the location of Tanco’s proposed “smart AI container port,” which is set to be built on a 480-acre land parcel.

China Mobile International is the global subsidiary of Chinese telco China Mobile. It signed an LoI with Singaporean clean energy company AsiaPhos for a data center in Malaysia back in February.