SM Investments Corp. (SMIC), the Sy family’s flagship, is considering launching its data center business in Batangas but is still waiting for better timing since foreign hyperscalers are still not too keen on setting up shop in the Philippines.
In an interview, SMIC President and CEO Frederic C. DyBuncio said there are many potential foreign investors for data centers to cater to hyperscalers such as “the Googles, the Amazons, the Metas.”
However, he noted that these potential investors are holding back because of the high cost of power and recurrence of natural calamities in the Philippines.
“As of now, they’re really not coming in yet. They still prefer to go to Malaysia, Vietnam. Because they feel that, in the Philippines, there [are too many] natural calamities,” DyBuncio said.
And, since the cost of power in the country is high, he said hyperscalers want developers to have a plan to convert their energy sources to renewables.
“Because they really want to be also very sustainable. So, it will come but I’m not sure when that is going to happen,” said DyBuncio, although he added that they have a site in mind in Batangas.
SMIC expects to stay on its long-term growth trajectory, banking on the Philippines’ resilient consumption-led economy, synergies across its business segments, and strong consumer fundamentals.
“The Philippine economy remains consumption-driven, and SMIC is well-positioned to support and capture this demand,” said DyBuncio.
He added that, “Our strong ecosystem—spanning retail, banking, and property—enables us to navigate challenges while delivering long-term value.”
In a recent report on Philippine conglomerates, equity research firm CLSA noted that SM’s retail segment will benefit from minimum wage increases, sustained remittances, and consumer spending resilience despite macroeconomic uncertainties.
It explained that wage adjustments and higher remittances, aided by a weaker peso, are expected to support household spending, particularly in essential categories. While consumer spending patterns may evolve, CLSA maintains that overall consumption will remain a key economic driver.
“We would note SMIC remains largely resilient and is worth a look given its valuation. SMIC is a beneficiary of a consumption-driven economy,” said CLSA Equity Analyst Joyce Anne Ramos.
She added that, “We anticipate spending behavior to continue to favor staples (essential items) over discretionary, with minimarts still driving growth.”
“We continue to see strong demand for essentials, with minimarts playing an essential role in serving everyday consumer needs,” DyBuncio said.
Beyond retail, CLSA underscored SMIC’s synergies across its portfolio, highlighting SM Prime Holdings Inc.’s record earnings and expanding mall network as well as BDO Unibank Inc.’s financial services as key growth drivers.
“We forecast that the retail segment will benefit from the widening presence of SM Prime, which in turn could boost BDO’s loan base and current account and savings account.
“Likewise, we expect the indispensable nature of the retail business’ products to increase foot traffic in malls and cater to upscale lifestyle,” CLSA wrote.
Currently, SM Prime has 87 malls in the Philippines with expansion geared towards the provinces to cover most of northern Luzon, Visayas, and progressive cities in Mindanao.
With a strong financial foundation, strategic business integration, and a focus on sustainable growth, SMIC said it remains committed to driving economic progress and delivering long-term value for its investors, customers, and communities.
“Our businesses complement each other—our expanding retail footprint enhances mall traffic, while BDO provides financial solutions that fuel both consumption and enterprise growth. These synergies allow us to build resilience and create shared value for our stakeholders,” DyBuncio said.