Globe Telecom Inc. is in advanced discussions with Singapore-based ST Telemedia Global Data Centres (STT GDC) to form a joint venture (JV) that will enable the Ayala-led firm to create a top-tier data center business in the Philippines.
The two companies signed an exclusivity agreement, which allows them to discuss further “the carve-out of Globe’s data center business in the Philippines.” The transaction, Globe said, will take the form of a joint venture, with Globe expected to remain a significant shareholder.
“Our potential joint venture with STT GDC will therefore be a significant multi-year growth driver for Globe and will further drive our transformation into a digital platform, this time into B2B space, after the success of B2C with GCash,” said Globe President Ernest Cu.
Globe, through its wholly-owned subsidiary Innove Communications, Inc., has been operating data centers since 2001. Globe data centers offer world-class data, network, telecommunication and IT services ranging from carrier-neutral colocation space, managed security, mission-critical applications and cloud solutions.
Globe data center facilities have midterm expansion potential of up to 45 megawatts (MW) from the current 30MW. There are six commercial data centers nationwide and these are mostly Tier-3 aligned.
Globe said the possible partnership with STT GDC is the next important step that will accelerate Globe’s data center growth strategy and market share position in the Philippines.
“The Philippines is strategically positioned to capture the booming global demand for data centers. Our strong track record and extensive customer reach, together with STT GDC’s deep operational expertise, position us well to be a leading data center company in the Philippines,” added Cu.
Globe said it would inform the stock exchange if and when discussions will lead to definitive transactions.
STT GDC is one of the fastest-growing data center providers. With a global platform of data centers in the world’s major business markets of over 140 facilities across Singapore, UK, India, China, Thailand, South Korea, Indonesia and Japan, STT GDC offers a full suite of best-in-class, highly scalable and flexible data center solutions, connectivity and support services that best meet customers’ current and future colocation needs.
In October, Globe said it is looking at expanding its data centers and capitalizing on their high growth potential to serve more enterprises in the Philippines.
Peter Maquera, SVP for Globe Business, Enterprise Group, said there are three main developments that are driving demand for data centers—increasing data traffic and consumption, the demand for edge computing, and the possibility of the Philippines becoming a regional hub for cloud providers due to its strategic location.
“The data center is one of the foundations of digital infrastructure that enables the Internet to happen. This is a high growth, high potential area, and it’s something we’re very committed to. It is an important infrastructure that the Philippines needs to provide as it becomes digitalized,” he said.
Maquera said the Philippines continues to be the earliest adopter of digital, and it spends the most time on the Internet than any country in the region. As a result, total data traffic per capita grows by 55 percent to 60 percent a year and is expected to reach 40,903 petabytes (PB) by 2025 from 473 PB in 2015.