ST Telemedia Global Data Centers and Ayala Corp. are investing in a wholly-owned subsidiary of Globe Telecom Inc. to develop, construct and operate data center facilities in the Philippines.
Under the agreement, STT GDC and AC will subscribe to new shares in KarmanEdge Inc., a 100-percent owned subsidiary of Globe that will house the carved-out data center business, which has the potential to expand by up to 100 megawatts in capacity in the mid to long term.
After the share subscription agreement, Globe will remain the largest shareholder with a 50-percent ownership, followed by STT GDC with 40 percent and AC taking up the balance.
The capital infusion by the new partners will result in a post-money valuation of KarmanEdge Inc. at over $350 million. Globe will receive proceeds of $100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth.
The transaction is expected to be completed in the first quarter of the year, subject to customary closing conditions, including relevant regulatory approvals.
“The Philippines is underserved market with huge demand for data center services. Together with STT GDC’s deep expertise and experience in developing, owning and operating data centers globally and AC’s significant business reach, relationships in the country and in the region, we believe this joint venture will be well-positioned to become the leader in the data center space in the Philippines,” Globe president and chief executive Ernest Cu said.
“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 centers in the country,” he said.
Globe, through wholly-owned subsidiary Innove Communications Inc., has been operating data centers in the country since 2001 and has since expanded its portfolio nationwide, serving both internal needs, local enterprises and global hyperscalers.
“We are thrilled to partner with Globe as we expand our global data center platform into the Philippines, further bolstering our strong presence within Asia. With Globe’s well-established digital solutions platform and our data center expertise, we are confident that through our partnership, we can build a leading data center platform in the country,” STT GDC president and chief executive Bruno Lopez.
“This venture will enhance our offerings to support enterprises as they grow their digital infrastructure in the Philippines and wider Asia Pacific region,” he said.
More than 43 percent of STT GDC’s data centers are operating with power derived from renewable sources, with an ambitious 2030 carbon-neutral target for all its data centers.
