After successive announcements from local and foreign companies on data center projects in the country, Globe Telecom has joined the “hyperscaler” fray by disclosing on Wednesday, March 2, that it formed of a joint venture partnership with Singapore-based ST Telemedia Global Data Centres (STT GDC) and Ayala Corporation (AC) for the construction of data center projects in the Philippines.
Last February, a number of big-ticket initiatives was announced by Singapore-based data center provider SpaceDC , local firm Beeinfotech PH, and telco giant PLDT.
In the case of Globe’s data center venture, its partners STT GDC and AC will subscribe to new shares in KarmanEdge, a 100% owned subsidiary of Globe that will house the data center business, which has the potential to expand by up to 100MW capacity in the mid to long term.
The capital infusion by the new partners will result in a post-money valuation of KarmanEdge at over $350 million. Globe will receive proceeds of $100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth.
Post execution of the share subscription agreement, Globe will remain the largest shareholder with a 50% ownership, followed by STT GDC with 40% and AC taking up the balance.
The venture is expected to help accelerate Globe’s 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.
Globe, through its wholly-owned subsidiary Innove Communications, has been operating data centers in the country since 2001 and has since expanded its portfolio nationwide, serving both its internal needs, local enterprises and global hyperscalers.
“The Philippines is an underserved market with huge demand for data center services. Together with STT GDC’s deep expertise and experience in developing, owning and operating data centers globally and AC’s significant business reach, relationships in the country and in the region, we believe that this Joint Venture will be well-positioned to become the leader in the data center space in the Philippines,” said Ernest Cu, Globe president and chief executive officer.
“Our partnership with STT GDC and AC will be a step forward in our ambition to transform the country’s digital infrastructure by building and operating the most energy efficient and connectivity-rich data centers in the country,” he added.
Bruno Lopez, president and group CEO at ST Telemedia Global Data Centres, said it is eager to partner with Globe as it expands its global data center platform into the Philippines and bolster its presence within Asia.
“With Globe’s well-established digital solutions platform and our data center expertise, we are confident that through our partnership, we can build a leading data center platform in the country. This venture will enhance our offerings to support enterprises as they grow their digital infrastructure in the Philippines and the wider Asia Pacific region,” Lopez said.
The transaction, which is expected to be completed in Q1 of 2022, will be subject to customary closing conditions, including relevant regulatory approvals.
“We are excited to support this initiative and leverage our wide relationships to maximize opportunities for the Venture. We believe we have found in STT GDC the right partner to help us scale up and play a major role in the development of the data center industry in the country,” said Fernando Zobel de Ayala, Ayala Corporation president and chief executive officer.
