Metro Manila (CNN Philippines, March 4) — Ayala Corp. and Singapore’s ST Telemedia Global Data Centres (STT GDC) are pitching in to advance the country’s data center market through a $350-million deal.
Ayala said it entered into a $350-million venture with STT GDC and Globe Telecom for the development and operation of data centers in the Philippines.
STT GDC boasts deep expertise in the field as it develops and operates data centers across international markets.
Under the deal, STT GDC and the conglomerate giant would subscribe to new shares in KarmanEdge, Inc., a Globe subsidiary.
KarmanEdge will “house the carved-out data center business, which has the potential to expand by up to 100MW (megawatts) capacity in the mid to long term,” both Globe and Ayala said in separate disclosures on Friday.
The deal is seen to be completed within the first quarter.
After the transaction, Globe—a dominant player in the telco industry, which has started to venture into other digital services—will remain the largest shareholder with a 50% ownership; STT GDC will hold 40%; while Ayala will take up the balance.
“Data center is an emerging industry that is fast becoming a vital component of the development of the Philippines’ digital infrastructure. Ayala is well-positioned to participate in the data center industry given its unique perspective as a conglomerate, specifically on the drivers of the industry’s efficiency, including land acquisition, renewable power generation, and connectivity,” Ayala said.
“In addition, this venture will help Ayala’s telecommunications unit Globe in its efforts to scale up its capacity and capabilities in the data center space and address the significant and growing demand for data center services in the country, both from local enterprises and global hyperscalers, including some of the biggest content providers in the world,” it said.
