PLDT is in negotiations with European private equity giant CVC Capital Partners for a potential minority stake sale in its data center business. This comes after talks with Japan’s Nippon Telegraph and Telephone Corporation (NTT) fell through due to disagreements on ownership structure.
PLDT’s data center portfolio, valued at $1 billion, consists of 11 facilities strategically located across Metro Manila. Recognizing the immense potential in this rapidly growing sector, CVC is eyeing a strategic investment in the business. The Luxembourg-based firm manages over $210 billion in assets, making it a strong contender for PLDT’s partnership.
Previous negotiations with NTT stalled after the Japanese company sought a majority stake, which PLDT was unwilling to relinquish. Fortunately, CVC presented a more attractive offer, convincing PLDT to remain at the negotiating table.
Industry analysts remain optimistic about the potential deal. “The data center industry in the Philippines is poised for significant growth,” said Juan Paolo Colet, managing director of China Bank Capital Corp. “Telcos like PLDT are making significant investments in this sector, which can translate to double-digit market expansion in the coming years.”
PLDT’s newly established subsidiary, VITRO Inc., currently manages the data center operations. With a combined capacity of 50 megawatts across its 10 existing facilities, VITRO is poised for further growth. The recently completed VITRO Sta. Rosa, the company’s biggest data center at a cost of $350 million, is expected to double capacity to 100 megawatts. Plans are already underway for further expansion, with studies exploring the development of additional data centers.
This development highlights the increasing demand for data center infrastructure in the Philippines. With major players like PLDT actively expanding their footprint, the sector is expected to witness significant growth in the coming years.
