AYALALAND Logistics Holdings Corp. (ALLHC) announced on Tuesday that it signed a framework agreement with FLOW Holdings I Philippines Pte. Ltd. to develop carrier-neutral data centers across the country.
“The Philippines is rapidly emerging as one of the preferred locations in the [Asia-Pacific] region to host data centers due to its strategic location as a gateway from the Pacific to Asia, superior connectivity, and rich natural resources for renewable energy,” AyalaLand Logistics said in a disclosure.
“The Philippines data center market is expected to experience double-digit annual growth, driven by a significant increase in data consumption, digitization, 5G connectivity, and data localization trends,” it added.
The project will deliver a 4.5-megawatt (MW) capacity facility expected to be ready for service by the fourth quarter in 2023.
FLOW’s modular product deployment approach, combined with a strong focus on connectivity and sustainability, will help maximize design flexibility and accelerate time-to-market, according to AyalaLand Logistics.
The joint venture is part of FLOW’s ongoing regional expansion, which provides customized solutions to meet the growing demand for digital infrastructure in Asia-Pacific.
“We are pleased to partner with ALLHC as they prepare to make this significant contribution to developing digital infrastructure capabilities in the Philippines. The decades of design and operational experience of the FLOW team, combined with ALLHC’s established record in industrial real estate development, makes this an ideal partnership to meet the rising demand for digital infrastructure in the country,” FLOW Digital Infrastructure Chief Executive Amandine Wang said in a statement.
“This investment will contribute to the Philippines’ transition to a digital economy. Furthermore, we believe this partnership with FLOW enhances the value of ALLHC’s industrial land bank,” AyalaLand Logistics Chief Executive Jose Emmanuel H. Jalandoni said.
The company said that discussions on the data center projects are ongoing.
FLOW invests and operates in the key physical assets of the digital infrastructure ecosystem, including cloud, hyperscale, and enterprise data centers, as well as network and fiber assets, across the Asia-Pacific region. It was launched in 2021 with $50 billion in assets under management, including $2 billion in data center assets.
AyalaLand Logistics, a subsidiary of Ayala Land, Inc., owns industrial parks, warehouses, cold storage facilities, and commercial leasing across the country.
Among its developments are industrial estates including Laguna Technopark, Pampanga Technopark, Cavite Technopark, Laguindingan Technopark in Misamis Oriental. Its ALogis standard factory buildings are located in Biñan and Calamba, Laguna; Naic in Cavite; Porac, Pampanga; Sto. Tomas, Batangas, and Manila, complemented by the ALogis Artico cold storage facilities in Biñan, Laguna. Its commercial leasing portfolio comprises Tutuban Center in Manila and South Park Center in Muntinlupa City.
At the stock exchange, AyalaLand Logistics shares ended lower by 3.79% or 16 centavos to P4.06 each on Tuesday. — Luisa Maria Jacinta C. Jocson