Globe Telecom Inc. has entered into a $350-million joint venture partnership with its parent firm Ayala Corp. (AC) and ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest growing data center providers, for the expansion of its data center footprint in the country.
Meanwhile, PLDT Group also announced it has partnered with
RED Engineering to build a green hyperscaler data center in Laguna. The company did not provide the cost of the project.
Under the agreement with Globe, both STT GDC and AC shall subscribe to new shares in KarmanEdge Inc., a 100- percent owned subsidiary of Globe that will house the carved-out data center business, which has the potential to expand by up to 100 megawatts capacity in the mid- to long -term.
Globe yesterday said 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 said it will remain the largest shareholder of KarmanEdge with a 50 percent ownership, followed by STT GDC with 40 percent and AC, 10 percent.
Globe said this venture will help accelerate 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 for local enterprises, and global hyperscalers including some of the biggest content providers in the world.
The company added the transaction is aligned with its view of the value and significant opportunity of the data center space in the Philippines, given the current market demand and the country’s strategic location in the region.
“The Philippines is an underserved market with huge demand for data center services.
Together with STT GDC’s deep exercise and experience in developing, owning, and operating data centers globally and AC’s significant business reach, relationship 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,” Ernest Cu, Globe president and chief executive officer (CEO), said in a statement.
The transaction, which is expected to be completed in the first quarter of 2022, will be subject to customary closing conditions, including relevant regulatory approvals.
In a separate statement, PLDT and Smart president and CEO Alfredo Panlilio said the project with RED advances the Group’s drive to incorporate renewable energy and best sustainable practices in the operations of its facilities moving forward.
RED is a company under ENGIE, a global energy and services group operating in the three key business sectors of low-carbon electricity generation (with particular emphasis on natural gas and renewables), energy infrastructures and customer solutions. Recognized with 28 data center industry awards, their projects include the successful delivery of over 800 data centers in over 40 countries.
To be built in a five-hectare PLDT property in Laguna, the latest, state-of-the-art hyperscale facility will be designed based on Leadership in Energy and Environmental Design (LEED) standards implementing global-class sustainability practices in design, supply, and building operations.
While Green energy supply is slowly gaining traction with the availability in some parts of the country, VITRO plans to secure its hyperscale power requirements through both renewable energy purchase from the grid, and harvesting off-grid green energy sources such as solar, wind, and geothermal.
In addition, VITRO Sta. Rosa aims to use state-of-the-art cooling technology, hot and cold aisle containment, reducing power loss using high efficiency UPS systems and construction materials that help maintain the ambient temperature within the building. Myla Iglesias
