Globe, one of the leading digital solutions platform in the Philippines has formed a joint venture with ST Telemedia Global Data Centres (STT GDC) and Ayala Corporation (AC), for the development, construction and operation of data centre projects in the Philippines.
As per the agreement, both STT GDC and AC shall subscribe to new shares in KarmanEdge, Inc., a 100 per cent owned subsidiary of Globe that will house the carved-out data centre business, which has the potential to expand by up to 100MW capacity in the mid to long term. Post execution of the share subscription agreement, Globe will remain the largest shareholder with a 50% ownership, followed by STT GDC with 40 per cent and AC taking up the balance, according to a company statement.
This development could usher in a huge digital transformation in a country where demand for data centre services have shot through the roof, due to high adoption.
“The Philippines is an underserved market with huge demand for data centre services. Together with STT GDC’s deep expertise and experience in developing, owning and operating data centres globally and AC’s significant business reach, relationships in the country and in the region, we believe that this Joint Venture will be well-positioned to become the leader in the data centre space in the Philippines. Our partnership with STT GDC and AC will be a step forward in our ambition to transform the country’s digital infrastructure by building and operating the most energy efficient and connectivity-rich data centres in the country.” Ernest Cu, Globe President and Chief Executive Officer.
Scaling up
This venture will help accelerate Globe’s efforts to scale up its capacity and capabilities in the data centre space and address the significant and growing demand for data centre services in the country, both from local enterprises and global hyperscalers, including some of the biggest content providers in the world. This deal also allows Globe and Ayala to partner with one of the world’s largest data centre operators and importantly, a partner that also aligns with its environmental, social and governance aspirations.
Currently, more than 43 per cent of STT GDC’s data centres are operating with power derived from renewable sources with an ambitious 2030 carbon-neutral target for all its data centres.
With Globe’s well-established digital solutions platform and our data centre expertise, we are confident that through our partnership, we can build a leading data centre platform in the country. This venture will enhance our offerings to support enterprises as they grow their digital infrastructure in the Philippines and the wider APAC region,” said Bruno Lopez, President & Group CEO, ST Telemedia Global Data Centres.
The transaction is fully aligned with Globe’s view of the value and significant opportunity of the data centre space in the Philippines, given current market demand and the country’s strategic location in the region. More importantly, it reinforces Globe’s transformation into a leading digital solutions group that provides connectivity and solutions to power and enable a robust digital ecosystem for the Filipino.
The capital infusion by the new partners will result in a post-money valuation of KarmanEdge, Inc. at over US$350 million. Globe will receive proceeds of US$100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth, company executives said.
The transaction, which is expected to be completed in Q1 2022, will be subject to customary closing conditions, including relevant regulatory approvals. Others share a similar optimism regarding data centres.
Last month, SpaceDC, a Singapore-based data center provider, is working with JLL, a global real estate services firm, to build a secure, resilient, network rich, data centre in Philippines. Read: https://w.media/spacedc-to-build-72mw-hyperscale-data-center-in-greater-manila-largest-in-philippines/
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