Converge ICT Solutions Inc., a prominent broadband provider in the Philippines, has committed to investing up to P5 billion over the next three years for the establishment of data centers essential for accommodating its forthcoming digital platforms.
Despite a reduction in capital expenditures related to its established infrastructure network, Converge is earmarking P5 billion for the development of new data centers.
CEO and co-founder Dennis Anthony Uy emphasized the company’s strategic allocation of funds toward product development and enhancement starting in 2024. Uy emphasized the necessity for data centers to support the storage of applications and information associated with their digital channels.
Anticipating a rising demand for innovative services in an era where online activities have become the norm, Uy expressed that the foundational digital highway has been laid, necessitating the creation of platforms, storage, and computing capabilities.
In August 2023, Converge announced a substantial investment of at least $20 million (approximately P1 billion) for each of the data centers planned in Cebu, Pampanga, and Quezon City. As Converge develops its suite of digital platforms for consumers and enterprises, the company requires ample data storage space.
While Converge scaled back its capital expenditures to a range of P12 billion to P15 billion in 2023, the company intends to elevate it to a band of P15 billion to P17 billion this year.
This increase is attributed to securing the right to use new subsea cables, a move financed through the company’s revenue flow, as they currently opt to steer clear of the debt market due to prevailing elevated interest rates.