Globe, a leading digital platform in the Philippines with major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare, has signed an exclusivity agreement with Singapore-headquartered ST Telemedia Global Data Centres ("STT GDC"), one of the fastest-growing data centre providers globally, on the carve-out of Globe's data centre business in the Philippines ("Globe DC"). Under the exclusivity agreement, Globe and STT GDC will enter into discussions with the goal of signing definitive agreements related to Globe DC.
Through its wholly-owned subsidiary Innove Communications, Inc., Globe has been operating data centres since 2001 and has since expanded its portfolio nationwide, serving both its internal needs and corporate clients across various industries. Globe data centres are globally competitive, advanced, standard-compliant, and highly secure facilities that provide world-class data, network, telecommunication, and IT services ranging from carrier-neutral colocation space to managed security, mission-critical applications, and cloud solutions. The portfolio is expected to grow as Globe continues to expand its footprint in anticipation of large demand requirements in the future. Globe data centre facilities have midterm expansion potential of up to 45MW power. Globe believes that partnering with STT GDC is the next critical step in accelerating Globe's data centre growth strategy and market share position in the Philippines, allowing them to capitalise on the region's structural growth trends and create value for key stakeholders in the long run.
The transaction is expected to take the form of a joint venture, in which Globe will remain a significant shareholder. The investment into Globe DC is fully consistent with Globe's long-term strategy of its data centre business through partnering with a leading data centre operator to create a top tier data centre business in the Philippines and regionally. More importantly, this transaction reinforces Globe's efforts to innovate into a leading digital solutions group that provides connectivity and solutions to power and enable a robust digital ecosystem for the Filipino.
"The Philippines is strategically positioned to capture the booming global demand for data centres. Our strong track record and extensive customer reach, together with STT GDC's deep operational expertise, position us well to be a leading data centre company in the Philippines," Ernest L. Cu, President and CEO of Globe commented. "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."