A data center offering 100MW of capacity could be coming to the southern Indian state of Telangana, as per a memorandum of understanding signed at Davos between UPC Volt and the state’s government.

UPC Volt is a joint venture formed by two companies: UPC Renewables, a developer of wind and solar projects in the APAC Region, and Volt, a Netherlands-based AI data center firm led by the co-founder of data center firm Switch.

Telangana Today has reported that the facility will require a proposed investment of Rs 50 billion ($544m), with construction to take over five years.

Details about the facility’s location and capacity were not made available.

Memorandums of understanding are low-stakes agreements that signal interest without being legally binding, and it is a common tool used by Indian states and data center operators to raise the public profile of a given deal.

Digital Connexion, jointly owned by Digital Realty, Brookfield, and Reliance Industries, signed a memorandum with the government of Andhra Pradesh last November concerning the construction of a 1GW data center campus.

Singapore’s ST Telemedia inked a similar agreement with the government of Maharashtra last October to expand its existing data center parks in the cities of Mumbai and Pune.

Located in India’s south, Telangana is home to the city of Hyderabad, one of the country’s prominent inland data center hubs.

Last year, hyperscalers AWS and Microsoft announced that they would be expanding their presence in the city. In particular, AWS is promising to invest $7bn in its cloud infrastructure.