Globe Telecom Inc. has formed a joint venture partnership with ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest growing data center providers, and Ayala Corporation (AC) for an over P18-billion ($350M) data center.
Under the agreement, both STT GDC and AC shall subscribe to new shares in Karman Edge, Inc., a 100 percent owned subsidiary of Globe that will house the carved-out data center business.
The data center has the potential to expand by up to 100 megawatts (MW) capacity in the mid to long term.
Post-execution of the share subscription agreement, Globe will remain as the largest shareholder, with a 50 percent ownership, followed by STT GDC with 40 percent, and AC taking up the balance.
The venture will enable Globe to scale up its capacity and capabilities in the data center space to cater to both local enterprises and global hyperscalers, including some of the biggest content providers in the world.
The deal also allows Globe and Ayala to partner with one of the world’s largest data center operators who also aligns with the Ayala Group's environmental, social and governance aspirations.
Today, 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.
The capital infusion by the new partners will result in a post-money valuation of Karman Edge, Inc. at over $350 million.
Globe will receive proceeds of $100 million from the transaction with the remaining capital injected to be used by the business for future expansion and growth.
The transaction, which is expected to be completed in the first quarter of 2022, will be subject to customary closing conditions, including relevant regulatory approvals.
It is fully aligned with Globe’s view of the value and significant opportunity of the data center space in the Philippines, given current market demand and the country’s strategic location in the region.
More importantly, the venture facilitates Globe’s transformation into a leading digital solutions group.
Globe, through its wholly-owned subsidiary, Innove Communications, Inc., has been operating data centers in the country since 2001.
The company has since expanded its portfolio nationwide, serving both its internal needs, local enterprises and global hyperscalers.
Globe data centers are globally competitive, advanced, standard-compliant, and highly secure facilities strategically located across the archipelago.
“The Philippines is an underserved market with huge demand for data center services," says Ernest L. Cu, Globe President and Chief Executive Officer.
"Together with STT GDC’s deep expertise and experience in developing, owning and operating data centers globally and AC’s significant business reach, we believe this Joint Venture will be well-positioned to become the leader in the data center space in the Philippines,” he remarked.
“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,” Cu added.
“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," says Bruno Lopez, President & Group CEO, ST Telemedia Global Data Centres.
"With Globe’s well-established digital solutions platform and our data center expertise, we are confident we can build a leading data center platform in the country."
“We are excited to support this initiative and leverage our wide relationships to maximize opportunities for the Venture," according to Fernando Zobel de Ayala, Ayala Corporation President and Chief Executive Officer.
"We believe we have found in STT GDC the right partner to help us scale up and play a major role in the development of the Data Center Industry in the country,” he concluded.