SM Investments Corporation, a prominent company in the Philippines with interests in retail, banking, and property sectors, is venturing into the data center industry, banking on the increasing demand for data storage driven by artificial intelligence (AI) applications.
According to SMIC president and CEO Frederic DyBuncio, they are exploring various opportunities in industries crucial for the economic growth of the Philippines, including data centers. DyBuncio emphasized the growing necessity for servers due to the proliferation of AI-driven data.
DyBuncio stated that SMIC plans to construct data centers in the country to meet both local and international demand, particularly as some countries, including those in Europe, are imposing restrictions on new data center establishments.
He mentioned that SMIC is in discussions with a local partner to build “cold shell” facilities, essentially fully-equipped buildings to house servers or supercomputers. The company’s model involves providing the infrastructure while seeking operators to manage the facilities.
The first “cold shell” facility is expected to be built in Batangas within the year, with talks ongoing with potential locators. Data centers will be integrated into SMIC’s portfolio investments as part of the company’s strategy to increase its revenue and income contribution over the next five years.
DyBuncio highlighted SMIC’s diverse portfolio investments, including integrated resorts, mining, community malls, office towers, logistics, retail, mobile payments, and renewable energy. He mentioned that portfolio investments contributed approximately 9% to SMIC’s earnings last year, with plans to increase this contribution to the “teens” level in the coming years.
Furthermore, DyBuncio mentioned SMIC’s investments in logistics expansion, geothermal energy, and retail outlets under Goldilocks brand, demonstrating the conglomerate’s commitment to diversification and growth across various sectors.