Ayala Group joins forces with Telemedia
5 April 2022
The Ayala Group joins forces, the country’s oldest conglomerate, has strengthened its presence in the country’s rapidly growing data center industry by forming a joint venture with Singapore’s Telemedia Global Data Centers worth $350 million (STT GCD).
Last week, Ayala Corp. and its telco arm Globe Telecom signed an agreement with STT GCD, one of the world’s fastest-growing data center providers, for the construction and operation of data center projects in the Philippines.
The investment in the data center industry will benefit Ayala, which sees data centers as an emerging industry that is quickly becoming a critical component of the Philippines’ digital infrastructure development.
“Ayala is well-positioned to participate in the data center industry given its unique perspective as a conglomerate, particularly on the industry’s efficiency drivers, such as land acquisition, renewable power generation, and connectivity,” Ayala stated in its disclosure.
Globe will rely on each party’s strengths and expertise, with Globe providing access and expertise to local enterprises and existing hyperscaler clients on site build and management logistics through its subsidiary, Innove Communications Inc. STT GDC has extensive knowledge and experience in developing, owning, and operating data centers around the world, and can provide access to a larger network of hyperscaler clients as well as share best practices in DC design and clean energy.
Furthermore, Ayala Group joins forces with Globe in its efforts to scale up its capacity and capabilities in the data center space, as well as address the country’s significant and growing demand for data center services, both from local enterprises and global hyperscalers.
Ayala and STT GDC will subscribe to new shares in KarmanEdge Inc., a wholly owned subsidiary of Globe’s GTI Business Holdings Inc., which will house the carved-out data center business, which has the potential to expand by up to 100 MW capacity in the mid to long term.
“On March 31, Ayala Corp., Globe, and STT GDC signed and executed all of the definitive agreements and met all of the transaction’s closing conditions,” Ayala said yesterday.
Following the execution of the share subscription agreement, GTI Business will remain the joint venture’s largest shareholder with a 50 percent stake, followed by STT GDC with a 40 percent stake and Ayala with the remainder.
