Sembcorp Industries says it has entered into a memorandum of understanding (MOU) with GDS Holdings, a developer and operator of high-performance data centres in China on September 11.

The MOU was signed by Sembcorp’s wholly-owned subsidiary Sembcorp (China) Holding Co.

Under the agreement, both companies will jointly develop and provide renewable energy solutions for GDS data centres in China.

Both companies will also explore further collaborative opportunities between GDS’s green data centres and Sembcorp’s renewable power generation and water management systems.

“We are proud to be selected by GDS as a strategic partner to explore integrated green solutions to support GDS’s environmental sustainability goals. We look forward to a fruitful collaboration that can enhance our joint purpose to harness green energy to support technological growth in China,” says Koh Chiap Khiong, head of Singapore, SEA, and China (Energy) at Sembcorp.

Sembcorp says the MOU is not expected to have a material impact on its earnings per share and net asset value per share for FY20 ending December 31.

Shares in Sembcorp closed 2 cents higher, or 1.7% up at $1.19 on September 10.