SM Investments Corp., a conglomerate in the Philippines, plans to sell its small stake in the data center businesss citing high electricity cost in the country, according to recent reports.
“From our perspective, the power cost is very expensive and we’ll probably sell the small minority we have in the data center business eventually,” SM Investments president and chief executive officer Frederic DyBuncio was quoted to have said. In April last year, SM Investments subscribed to 5.98 million shares of YCO Global Cloud Centers Holdings Inc, increasing its equity interest to 18.1 percent.
YCO is a digital infrastructure company building sustainable, carrier-neutral and greenfield data centers.
In an earlier interview, DyBuncio was quoted to have said that major hyperscalers prefer to invest in Malaysia and Vietnam because they are of the view that the Philippines is prone to too many natural disasters and the cost of power “is very expensive”.
SM Investments is one of the largest conglomerates in the Philippines with investments in the retail, banking and property sectors.
