Megawide Construction Corporation, one of the leading engineering and infrastructure firms in the Philippines, will enter the $280 million data center industry as it competes with telcos for the expanding global market.
According to Property expert Colliers Philippines, as investments in the sector reached $298 million, in 2021, the Philippines is one of the leading rising data center industries in Southeast Asia; With 10 data centers in its portfolio, telco giant PLDT currently dominates the market.
In line with this, in order to increase their financial resources for future projects, Megawide management would give up their ownership part in the company that developed and operates Mactan Cebu International Airport (MCIA) and will move into its data center project that will start this year.
The Aboitiz Group will acquire full ownership of the MCIA operator by the end of 2024 according to a P25 billion deal signed last week by Megawide and its Indian partner GMR Airports International BV.
Megawide chief business development officer, Jaime Raphael Feliciano stated that the company aspires to fulfill some of the specifications for hyperscale, which refers to efforts made by tech giants like Amazon, Facebook, and Google to obtain infrastructure so they can meet their data storage needs.
He acknowledged that Megawide has begun talks with tech giants in search of hubs where they might locate their data needs. Additionally, he stated that regulatory documents revealing Megawide’s foreign partner in the construction of the digital facilities will be made soon.
According to Megawide, in order to ensure that its balance sheet is prepared for future initiatives, it had to part with its crown jewel. Hence, by hopping on the data center bandwagon, Megawide will profit from a growing industry that is expected to grow by 25% annually until 2027.