EdgeConneX, a provider of data center solutions, has formed a joint venture with Aboitiz InfraCapital (AIC), a subsidiary of the Aboitiz Group, one of the largest conglomerates in the Philippines. The joint venture will develop and operate data centers in the Philippines to address the enormous growth in data usage in the country.
The Aboitiz Group is a diversified conglomerate with businesses in power generation, banking and financial services, infrastructure, food, land and construction. AIC is the group’s infrastructure investment arm. Meanwhile, EdgeConneX provides data center solutions that enable its customers to optimize their IT infrastructure and improve their business performance.
According to Arizton Advisory and Intelligence, the Philippines data center market is expected to grow rapidly in the next few years, reaching $635 million by 2027. This industry was valued at $298 million in 2021 and since then, it has been growing at a CAGR of 13.4%.
Under the terms of the agreement, the joint venture will develop data centers to meet the specific needs of EdgeConneX’s hyperscale and enterprise customers. AIC will contribute its expertise in local development and operations, as well as its relationships with government and business leaders.
“In AIC, we have the ideal partner in the Philippines,” said Randy Brouckman, CEO of EdgeConneX. “They possess the local assets and expertise required to build out critical digital infrastructure that can best support our customers across the entire country. We look forward to investing in the digital economy of the Philippines and meeting our customers’ needs throughout the region. They complement our capabilities required to successfully capture this market opportunity.”
The first two data centers are located in the Manila metro area, with one facility next to the local internet exchange (IX) and another hyperscale campus nearby in the greater Manila area. AIC’s large land bank of 1,400 hectares for industrial use, as well as AboitizPower’s diverse renewable energy options, can provide not only an ideal location but also a long-term sustainable source of power for data centers, executives said.
“There is great excitement about the partnership and the incredible market opportunity the partnership enables,” commented Cosette V. Canilao, Aboitiz InfraCapital President and CEO. “The Philippines is underserved and seeing high domestic data demand growth relative to Southeast Asia. Our market size, favorable demographics, and proliferation of subsea cables make the Philippines an ideal destination for data center investments. We also have access to prime real estate in both city centers, such as Manila, as well as emerging economic hubs like Batangas. We’re thrilled to have a premier global data center partner in EdgeConneX.”
The joint venture is the latest in a series of investments by EdgeConneX in Asia. Earlier in 2022, EdgeConneX acquired the GTN Data Center in Indonesia. In 2021, the company made a strategic investment in Chayora, a leading data center developer and operator in China. EdgeConneX has also established a joint venture with Adani Enterprises in 2021, one of India’s largest conglomerates, to develop data center facilities in India.
“Asia is a major focus area of investment and growth for EdgeConneX,” stated Jan Vesely, Partner, EQT. “The data usage in Asia is expected to grow exponentially over the coming years, meaning that the underlying digital infrastructure must scale-up to meet increasing demand, thus creating compelling opportunities for investments. Whether through M&A or joint ventures such as this one with Aboitiz, we look to continue steadily building out the EdgeConneX global platform in Asia in collaboration with leading local partners.”
Aboitiz InfraCapital | APAC | edge data center | EdgeConneX | funding | hyperscale