Globe, Ayala Group team up with Singapore-based firm for USD 350-million data center projects

Philippines Globe Telecom and Ayala Corp. have partnered with Singapore-based ST Telemedia Global Data Centres (STT GDC) to strengthen the country's data center market.

File photo: Globe logo

More data centers to be deployed?

The joint venture seeks to develop and operate data centers in the Philippines.

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.

Under the agreement, STT GDC and Ayala would subscribe to new shares in KarmanEdge, Inc., which is owned by Globe.

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 statements.

The deal is expected to complete within this month, the companies said.

After the transaction has been completed, Globe will remain the largest shareholder with 50 percent ownership; STT GDC will control 40 percent; while Ayala will take up the balance.

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, Ayala said.

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Source: BusinessWorld