AyalaLand Logistics Holdings Corp. (ALLHC) is venturing into data center business.
The company is partnering with FLOW Holdings I Philippines Pte. Ltd., the vehicle of FLOW Digital Infrastructure for the venture.
The two parties have signed a framework agreement to develop carrier-neutral data centers across the Philippines, “subject to the terms and conditions as may be mutually agreed.”
“The Philippines is rapidly emerging as one of the preferred locations in the APAC region to host data centers due to its strategic location as a gateway from the Pacific to Asia, superior connectivity, and rich natural resources for renewable energy. The Philippines data center market is expected to experience double-digit annual growth, driven by a significant increase in data consumption, digitization, 5G connectivity, and data localization trends,” the company said.
AyalaLandLogistics said the venture’s initial roll-out will target the delivery of a 4.5MW-capacity facility, ready for service by the fourth quarter of 2023.
“FLOW’s modular product deployment approach, combined with a strong focus on connectivity and sustainability, will help maximize design flexibility and accelerate time-to-market,” it said.
AyalaLand Logistics said the joint venture is pursuant to FLOW’s ongoing Asia-Pacific expansion, “leveraging the team’s industry- leading design, development, and operation expertise in next-generation data centers.”
“FLOW is a regional platform providing customized solutions to meet the growing demand for digital infrastructure in Asia- Pacific. FLOW was launched in 2021 by PAG, a leading alternative investment firm focused on the Asia Pacific with $50 billion in assets under management, including $2 billion in data center assets,” it said.
“This investment will contribute to the Philippines’ transition to a digital economy. Furthermore, we believe this partnership with FLOW enhances the value of AyalaLand Logistics’s industrial landbank,” said Jose Emmanuel Jalandoni, AyalaLand Logistics president.
“Discussions on the data center projects are ongoing. When appropriate, AyalaLand Logistics will make relevant announcements in accordance with the rules of the Securities and Exchange Commission and the Philippine Stock Exchange,” Jalandoni said.
