The deal would see STT GDC buy into Globe DC allowing it to scale and capitalise on emerging trends and demand across the Philippines.
Globe's data centre portfolio has operated under the Innove Communications Inc subsidiary since its launch in 2001. The existing Globe DC facilities have "midterm expansion potential of up to 45MW of power" Globe said. The JV will pave the way for further growth with Globe retaining its position as a "significant shareholder".
“The Philippines is strategically positioned to capture the booming global demand for data centres," said Globe president and CEO Ernest L. Cu (pictured).
"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 success of B2C with GCash.”
No figures were disclosed in this week's Philippines Stock Exchange filing and STT GDC has yet to release its own statement, however Globe said the partnership "is the next important step that will accelerate Globe’s data centre growth strategy and market share position in the Philippines, enabling them to take advantage of the structural growth trends in the region and creating value for key stakeholders in the longer term".
Globe DC – the data centre arm of the Philippines’ biggest telecommunications provider by market value – has explored various partnership models for its part divestment.
In September, Bloomberg reported that Globe was considering a sale of the data centre portfolio with expectations it would raise $200 million through such a deal.
STT GDC, which released its inaugural ESG report last week, is headquartered in Singapore and operates more than 140 facilities across Singapore, UK, India, China, Thailand, South Korea, Indonesia and Japan.
