Globe has signed an exclusivity agreement with ST Telemedia Global Data Centres (STT GDC) with both parties entering into joint venture talks in the Philippines, amid plans to capitalise on increased data centre demand.
Centred around Globe’s data centre business, the potential “carve-out” transaction is motivated by a desire to accelerate the telecommunications provider’s go-to-market strategy and industry share position at a national level.
Should a joint venture be agreed, Globe is expected to remain a “significant shareholder” with a deal cited as “fully consistent” with the company’s long-term strategy of partnering with data centre operators to create “top tier” facilities both locally and regionally.
“The Philippines is strategically positioned to capture the booming global demand for data centres,” said Ernest Cu, president and CEO of Globe. “Our strong track record and extensive customer reach, together with STT GDC's deep operational expertise, position us well to be a leading data center company in the Philippines.”
According to Cu, the transaction also helps reinforce Globe's efforts to transition into a digital solutions group that provides connectivity and solutions services.
“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,” he added.
Delivered via wholly-owned subsidiary Innove Communications, Globe has operated data centres since 2001 following national expansion to meet both internal company and external customer requirements.
The facilities -- which have mid-term expansion potential of up to 45MW of power -- provide data, network, telecommunication and IT services ranging from carrier-neutral colocation space, managed security, mission-critical applications and cloud solutions.
Looking ahead, the portfolio is expected to grow as Globe continues to expand footprint in “anticipation of large demand requirements” in the future.
Despite the heightened media activity, Globe stressed that discussions on such joint venture opportunities are ongoing with “no certainty” that the advanced conversations will lead to definitive transactions.