Globe Telecom Inc. yesterday said it is in advance discussions with Singapore based technology firm ST Telemedia Global Data Centres (STT GDC) to a form joint venture that would accelerate its data center strategy in the country.
The two firms have signed an exclusivity agreement to enter into discussions and aim to sign definitive agreements related to Globe data center (DC).
The transaction is expected to take the form of a joint venture in which Globe will remain a significant shareholder.
Globe said the investment into Globe DC is fully consistent with the long-term strategy of its data center business through partnering with a leading data center operator to create a top tier data center business in the Philippines and regionally.
The telco added a partnership with STT GDC is the next important step that will accelerate its data center growth strategy and market share position in the Philippines, to take advantage of the structural growth trends in the region and create value for key stakeholders in the longer term.
“The Philippines is strategically positioned to capture the booming global demand for data centers. Our strong track record and extensive customer reach, together with STT GDC’s deep operational expertise, position us well to be a leading data center company in the Philippines,” Ernest Cu, Globe president and chief executive officer, said in a statement.
“Our potential joint venture with STT GDC will therefore be a significant multi-year growth driver for Globe and will further drive our transformation into a digital platform, this time into B2B space, after the success of B2C with GCash,” Cu added.
However, Globe said the discussion on such opportunities are ongoing and there is no certainty that these will lead to definitive transactions.
Globe, through its wholly owned subsidiary Innove Communications Inc., has been operating data centers since 2001, and has since expanded its portfolio nationwide, serving both its internal needs and corporate clients across various industries. – Myla Iglesias
