Singapore-headquartered ST Telemedia Global Data Centres (STT GDC) has signed an exclusivity agreement with digital platform Globe (PSE:GLO) to explore joint venture (JV) options which could see the operator enter the Philippines by acquiring a minority share in Globe’s data centre portfolio (Globe DC).
Under the exclusivity agreement, Globe and STT GDC will enter into discussions and aim to sign definitive agreements related to Globe DC.
Globe, through its wholly-owned subsidiary Innove Communications, Inc., has been operating data centres since 2001 and has since expanded its portfolio nationwide, serving both its internal needs and corporate clients across various industries.
Its data centre facilities have midterm expansion potential of up to 45MW power.
Ernest L. Cu, President, and CEO of Globe, said: “The Philippines is strategically positioned to capture the booming global demand for data centres. Our strong track record and extensive customer reach, together with STT GDC’s deep operational expertise, position us well to be a leading data centre company in the Philippines.
“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.”
Globe has recently also increased its telecommunications footprint and unveiled plans to build a new data centre amid booming demand from digital services in the Philippines.
The Philippines data centre market is set to attrack US$535 million in investments by 2026, growing at a CAGR of 11.40% during 2021-2026, according to Research and Markets data.
STT GDC’s current portfolio includes over 140 facilities across Singapore, UK, India, China, Thailand, South Korea and Indonesia. The company has recently announced it is expanding into Japan with two data centres to be developed by and leased from Goodman Group.
In its first ESG report, the business has also pledged to transition its data centre operations to be net carbon-neutral by 2030.