PLDT eyes Greater Metro Manila for data center expansion

PLDT Inc. is considering Greater Metro Manila (GMM) as a potential location for its upcoming 12th data center, with a planned capacity of at least 100 megawatts, according to the company’s data center arm ePLDT, Inc.

“Our main requirement is very far from the fault line and then second is access to reliable and adequate power. We have some choices that we can choose from. I think this will be in GMM,” ePLDT, Inc. President and Chief Executive Officer Victor S. Genuino told reporters last week.

GMM covers all the cities of Metro Manila and some cities in Bulacan, Cavite, Laguna, and Rizal.

“We have a list. There are a lot of options because a lot of these real estate companies obviously look at it as a prime lot to be able to sell because we are talking about 5 hectares and above,” he said. 

Earlier this year, ePLDT announced its plan to construct its 11th data center, named VITRO Sta. Rosa. This facility is scheduled to be built on a five-hectare plot in Sta. Rosa, Laguna.

The initial capacity is set to be 14 megawatts by early 2024, with projections for it to expand to 50 megawatts upon full operation.

The company has been receiving numerous requests from potential customers to visit the site, according to Mr. Genuino.

“It is funny because it is only a construction site right now. But in spite of that we have a lot of customers seeking to inspect the site, so it’s very exciting because I think there is a lot of interest in the market,” he said.

He also said that the company will be able to firm up the interest in colocation services at VITRO Sta. Rosa by the first quarter of next year.

The company is targeting to hire more than 100 people for a total shift at the data center or around 30 people per shift.

When asked about the investment amount for the 12th data center, Mr. Genuino said, “We must ensure that the construction costs are kept extremely tight. Once we have selected a site, the site’s coverage fee will determine the construction cost.”

However, he added that the company’s estimate for the construction cost of its data center is approximately P9 million per megawatt.

Department of Information and Communications Technology Secretary Ivan John E. Uy has said that there would be a fivefold increase in data center capacity in the Philippines for the next five years.

“Supporting the local data center race is PLDT and ePLDT, with a current 65% market share and further plans for expansion to position the Philippines as the regional hyperscaler hub in the Asia Pacific Region,” PLDT said in a press release.

Citing a report from S&P Global Marketing Intelligence, PLDT said that the compound annual growth rate in the country’s data center operational space from 2020 to 2025 is 13%.

To support this, the company has been putting investments into its international and domestic infrastructure such as cable systems, 5G network and data centers.

The company has received the provisional authority from the National Telecommunications Commission to construct two new cable landing stations in the country to host the Apricot cable system.

The 12,000-kilometer-long Apricot cable system is slated to be completed by the end of 2025. It will connect the Philippines, Japan, Singapore, Indonesia, Taiwan, and Guam.

Meanwhile, the cable landing facilities, targeted to be completed by early 2025, are expected to rise in Baler, Aurora and in Digos, Davao.

Gary Ignacio, chief data center officer at ePLDT, said that data centers and cloud are the foundation for enterprise growth and national digitalization efforts.

“We’re harnessing our experience and success in terms of being the outsourcing hub of the world. We can do the same for cloud solutions and data center services,” said Mr. Ignacio.

“Looking ahead, ePLDT is dedicated to expanding its data center infrastructure. With ongoing construction of VITRO Sta. Rosa and plans for Data Center 12, ePLDT is ready to meet the increasing demands of hyperscalers and enterprises that will further fuel the country’s digital economy,” said Roselle dela Cruz, vice-president for US & Europe, Middle East, and Africa Market at PLDT Global Corp.

PLDT shares closed P29 or 2.27% higher at P1,304 apiece on Monday.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile