Extra tags: Data CentreTelecommunication
Globe, a leading digital solutions platform in the Philippines with major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare, has announced the formation of a joint venture partnership with ST Telemedia Global Data Centres (STT GDC), one of the world's fastest-growing data centre providers, and Ayala Corporation (AC), the Philippines' leading conglomerate, for the development of cloud computing services.
Under the agreement, both STT GDC and AC shall subscribe to new shares in KarmanEdge, Inc., a 100% owned subsidiary of Globe that will house the carved-out data centre business, which can expand up to 100MW capacity in the mid to long term. Post execution of the share subscription agreement, Globe will remain the largest shareholder with a 50% ownership, followed by STT GDC with 40% and AC taking up the balance.
This partnership will aid Globe's efforts to expand its data centre capacity and capabilities in order to meet the significant and growing demand for data centre services in the country, which comes from both local businesses and global hyperscalers, including some of the world's largest content providers. This agreement also allows Globe and Ayala to collaborate with one of the world's largest data centre operators, as well as one that shares their environmental, social, and governance goals. Today, more than 43% of STT GDC's data centres run on renewable energy, and the company has set a goal to be carbon-neutral for all of its data centres by 2030.
The transaction is fully aligned with Globe’s view of the value and significant opportunity of the data centre space in the Philippines, given current market demand and the country’s strategic location in the region. More importantly, it reinforces Globe’s transformation into a leading digital solutions group that provides connectivity and solutions to power and enable a robust digital ecosystem for the Filipino.
Through its wholly-owned subsidiary, Innove Communications, Inc., Globe has been operating data centres in the country since 2001 and has since expanded its portfolio nationwide, serving both its internal needs, local enterprises and global hyperscalers. Globe data centres are globally competitive, advanced, standard-compliant, and highly secure facilities strategically located across the archipelago. They offer world-class data, network, telecommunication, and IT services ranging from carrier-neutral colocation space to managed security mission-critical applications, and cloud solutions.
“The Philippines is an underserved market with huge demand for data centre services. Together with STT GDC’s deep expertise and experience in developing, owning and operating data centres globally and AC’s significant business reach, relationships in the country and in the region, we believe that this Joint Venture will be well-positioned to become the leader in the data centre space in the Philippines,” said Ernest Cu, Globe President and Chief Executive Officer. “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 centres in the country,” he added.
“We are thrilled to partner with Globe as we expand our global data centre platform into the Philippines, further bolstering our strong presence within Asia. With Globe’s well-established digital solutions platform and our data centre expertise, we are confident that through our partnership, we can build a leading data centre platform in the country. This venture will enhance our offerings to support enterprises as they grow their digital infrastructure in the Philippines and the wider APAC region,” said Bruno Lopez, President & Group CEO, ST Telemedia Global Data Centres.
“We are excited to support this initiative and leverage our wide relationships to maximise opportunities for the Venture. 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,” said Fernando Zobel de Ayala, Ayala Corporation President and Chief Executive Officer.
The new partners' capital infusion will result in a post-money valuation of KarmanEdge, Inc. of more than US$350 million. Globe will get $100 million in cash from the purchase, with the remaining capital to use for future expansion and growth.
The transaction will be subject to usual closing conditions, including appropriate regulatory approvals, and is scheduled to close in Q1 2022.
