May 10, 2022
From Manila Bulletin
Ayala Land, Inc. subsidiary AyalaLand Logistics Holdings Corp. (ALLHC) and FLOW Holdings I Philippines Pte. Ltd., the vehicle of FLOW Digital Infrastructure, have signed a framework agreement to develop carrier-neutral data centers across the Philippines.
In a disclosure to the Philippine Stock Exchange, ALLHC said “The Philippines is rapidly emerging as one of the preferred locations in the APAC 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.”
It added that, “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.” The initial roll-out will target the delivery of a 4.5MW-capacity facility ready for service by the fourth quarter of 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.
The joint venture is pursuant to FLOW’s ongoing Asia-Pacific expansion, leveraging the team’s industry- leading design, development, and operation expertise in next-generation data centers.
FLOW is a regional platform providing customized solutions to meet the growing demand for digital infrastructure in Asia- Pacific.
It was launched in 2021 by PAG, a leading alternative investment firm focused on the Asia Pacific with USD50 billion in assets under management, including USD2 billion in data center assets.
“We are pleased to partner with ALLHC as they prepare to make this significant contribution to developing digital infrastructure capabilities in the Philippines,” said FLOW Chief Executive Amandine Wang.
Wang added that, “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.”
“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 landbank,” said ALLHC President and CEO and ALI Senior Vice President Jose Emmanuel H. Jalandoni.
ALLHC said discussions on the data center projects are ongoing and, when appropriate, it will make relevant announcements in accordance with the rules of the Securities and Exchange Commission (SEC) and the PSE.
UBS AG Singapore Branch acts as sole financial advisor to ALLHC on the transaction. — James A. Loyola