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- EDC and Megawide Construction are partnering to build a $300 million data center focused on AI, data analytics, and cloud storage in Cavite, the Philippines, set to launch in Q1 2024.
- Megawide will receive a minority 49% stake in OpCo and a 60% interest in EDCC as part of the agreement.
- Pending approval from the Philippine Competition Commission, the project will be the fifth data center in the Philippines, with a focus on minimizing environmental impact through the use of renewable energy.
Through a joint venture agreement, Singaporean firm Evolution Data Centres (EDC) and Philippine construction firm Megawide are set to create a $300 million data center focusing on artificial intelligence (AI), data analytics, and cloud storage, in Cavite, the two firms announced.
The four-hectare, 70-megawatt data facility will be constructed over the next five years. The first phase’s launch is expected to happen in the first quarter of 2024.
“EDC have selected the Philippines market as part of their strategy to focus on high growth markets and specifically because of the country’s rising data consumption, young digital-savvy generation and strong governmental support for digital transformation. As part of their commitment to build greener data centres they will work with Megawide to ensure that the new data centre will minimise its impact on the environment. This will include powering the facility with renewable energy,” EDC said in a statement.
Still subject to approval
However, the agreement is still subject to the approval of the Philippine Competition Commission. Megawide also confirmed that it has signed a shareholders’ agreement with EDC under which it will get a minority 49% stake in the operating company Evolution Data Centres Philippines, Inc. (OpCo) and a 60% interest in the landholding firm Evolution DC Capital PTE Ltd. (EDCC).
“Megawide is very excited about this venture because it represents the company’s first investment in the digital infrastructure space. While we have focused on transport and social infrastructure in recent years, current technological advances have significantly changed everyday life. Digitalization has greatly affected enterprises and consumers alike and data centres are at the very core of this new reality,” said Jaime Feliciano, Megawide’s Chief Business Development Officer.
Data center facility
A data center is a facility used to hold the operations of computer systems, such as telecommunications and storage systems. In addition, facilities like this one include redundant or backup power supplies, data communications connections, environmental controls, and various security devices.
And once completed, the data center is expected to offer solutions maximizing the advances in technology to use the benefits of cloud computing, artificial intelligence, and data analytics.
Where are the four data centers in the Philippines?
In a research done by BitPinas, the Philippines currently has four data centers in the country. Three in the National Capital Region (Paranaque City, Caloocan City, and Pasig City), and one in Pangasinan (Dagupan City).
“We are delighted to be partnering with Megawide to develop this innovative data centre in this exciting high-growth region. This project will deliver the very latest digital infrastructure to meet the needs of a growing, content hungry population. At EDC we are passionate about building and operating hyper-scale, sustainable data centres, across South East Asia” EDC’s CEO Darren Webb concluded.
This article is published on BitPinas: Megawide to Build $300 Million AI-focused Data Center in the Philippines
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.