Aboitiz InfraCapital Inc. (AIC), one of the Philippines’ leading conglomerates, has partnered with EdgeConneX (ECX), the industry leader in worldwide Hyperlocal to Hyperscale Data Center Solutions, to offer infrastructure solutions to the expanding hyperscaler market.
In a filing on Wednesday, the infrastructure division of the Aboitiz Group stated that as part of its deal with ECX, it will create two joint venture businesses to construct, run, and maintain data center facilities.
The primary goal of the exclusive partnership is to spread a network of hyperscale data centers throughout the Philippines. The first two data centers concentrate on the Manila metropolitan area, and a secondary hyperscale campus facility is also situated in the greater Manila region. The connectivity-focused facility is located next to the local internet exchange (IX).
The alliance will try to use AboitizPower’s varied renewable energy capacity, which the business intends to expand by 2030, as well as AIC’s land bank of 1,400 hectares of prime industrial real estate.
According to Cosette V. Canilao, Aboitiz InfraCapital President and CEO, the partnership and the amazing market opportunity it creates have generated a lot of excitement.
In comparison to Southeast Asia, the Philippines has strong domestic data demand growth and is underserved. The Philippines is a great place to invest in data centers due to its sizeable market, excellent demographics, and abundance of subsea cables. Additionally, they have access to expensive real estate in both urban centers like Manila and developing economic hubs like Batangas.
“We’re thrilled to have a premier global data center partner in EdgeConneX.” said Cosette V. Canilao
Meanwhile, for Randy Brouckman, CEO of EdgeConneX, AIC has the local resources and know-how necessary to develop vital digital infrastructure that will best serve their customers across the entire country.
With that, EdgeConneX is eager to support the Philippine digital economy and provide for the needs of its customers in the region. AIC complements their skills, which are necessary to seize this market opportunity.
“In AIC, we have the ideal partner in the Philippines,” said Randy Brouckman.
“The Philippines has consistently flown under the radar until just the last few years. The conditions are ripe for colocation providers to jump in and win business. In the last 12-18 months, data center operators, real estate developers, and investors have circled the market in anticipation of the expected demand. And the underdeveloped competitive landscape leaves the door open for tremendous opportunities and long-term growth potential.” stated Jabez Tan, Head of Research, Structure Research.
According to Jan Vesely, Partner at EQT Partners, for EQT and EdgeConneX, Asia is a key region of investment and growth. Data usage in Asia is predicted to increase dramatically over the next few years, necessitating a scaling-up of the underlying digital infrastructure to accommodate the rising demand and presenting enticing investment prospects. They aim to continuously expand the EdgeConneX global platform in Asia in partnership with top regional partners, whether through M&A or joint ventures like this one with Aboitiz.