Aboitiz Group teams up with US firm to venture into data centers business

The Aboitiz Group has taken another step towards its goal of becoming a “techglomerate” with its foray into the data center industry.

The group, through infrastructure arm Aboitiz InfraCapital Inc. (AIC), has teamed up with US-based EdgeConneX (ECX) to pave the way for the development of hyperscale data centers across the Philippines.

Hyperscale data centers are massive business-critical facilities designed to efficiently support robust, scalable applications of cloud service providers.

“Businesses are increasingly turning to cloud service providers — or hyperscalers — for cost efficiency, flexibility, and scalability; and thus the need for data centers has never been more demanding,” Aboitiz Group president and CEO Sabin Aboitiz said.

“This trend will continue with certainty and speed, and our efforts to seize the opportunities it offers have been proven successful with this latest landmark infrastructure deal for the Aboitiz Group,” he added.

The initial data center planned under the partnership will be located in the National Capital Region, while a secondary hyperscale campus is eyed in the Greater Manila Area.

AIC and ECX seek to address the rising data usage in the country by developing a data center platform that will house cloud service providers’ information technology equipment, enabling them to better support the Philippine market.

At the same time, the partnership aims to highlight the Philippines’ attractiveness for data centers as it aims to help boost the country’s digital infrastructure ecosystem and serve the local market demand.

The partnership will leverage on ECX’ global data center platform, build and operational capabilities, and superior hyperscale customer relationships.

It will be complemented by AIC’s local expertise, assets, and infrastructure portfolio, including its 1,400 hectares of prime industrial real estate and its affiliate diversified renewable energy capacity.

AIC president and CEO Cosette Canilao said: “The Philippines is an underserved market, and is witnessing high data demand growth relative to Southeast Asia. The market size, favorable demographics, and proliferation of subsea cables make the Philippines an ideal destination for data center investments.”