AyalaLand Logistics Holdings Corp. teamed up with foreign investment fund FLOW Holdings I Philippines Pte. Ltd. to develop data centers across the country.
ALLHC said in a disclosure to the stock exchange both parities signed a framework agreement to develop carrier-neutral data centers across the Philippines, subject to the terms and conditions as may be mutually agreed.
“This investment will contribute to the Philippines’ transition to a digital economy. Furthermore, we believe this partnership with FLOW enhances the value of ALLHC’s industrial landbank,” said ALLHC president and chief executive Jose Emmanuel Jalandoni.
ALLHC and FLOW plan to venture into data center development as the country is rapidly emerging as one of the preferred locations in the Asia Pacific region to host data centers due to its strategic location, superior connectivity and rich natural resources for renewable energy.
“The Philippines data center market is expected to experience double-digit annual growth, driven by a significant increase in data consumption, digitization, 5G connectivity and data localization trends,” ALLHC said.
The initial roll-out will target the delivery of a 4.5-megawatt-capacity facility ready for service by fourth quarter of 2023.
The joint venture is pursuant to FLOW’s ongoing Asia-Pacific expansion, leveraging the team’s industry-leading design, development and operation expertise in next-generation data centers.
“We are pleased to partner with ALLHC as they prepare to make this significant contribution to developing digital infrastructure capabilities in the Philippines. The decades of design and operational experience of the FLOW team, combined with ALLHC’s established record in industrial real estate development, makes this an ideal partnership to meet the rising demand for digital infrastructure in the country,” said Amandine Wang, chief executive of FLOW Digital Infrastructure.
FLOW is a regional platform providing customized solutions to meet the growing demand for digital infrastructure in Asia-Pacific.
FLOW was launched in 2021 by PAG, a leading alternative investment firm focused on the Asia Pacific with $50 billion in assets under management, including $2 billion in data center assets.