Globe Telecom Inc. is betting the artificial intelligence boom can turn its data-center venture into its next billion-dollar business as fintech arm Mynt Inc. heads for a record Philippine initial public offering.
The carrier plans to spend at least $1 billion in 2027, mainly to expand its data business, President and Chief Executive Officer Carl Raymond Cruz said in an interview Monday. Capital expenditures are expected to equal 23% to 28% of revenue over the next few years.
"We need to continue investing in the network," he said. "We will continue to do that but with very selective, highly-prioritized areas mainly related to data and the digital economy."
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The country's second-largest telecommunications firm is looking beyond its traditional operations for its next leg of growth as AI fuels a global race for computing capacity. Billions of dollars are pouring into the sector across Asia as cloud providers and technology companies seek to meet surging demand.
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Globe already has a foothold through ST Telemedia Global Data Centres Philippines, a venture with parent Ayala Corp. and Singapore Technologies Telemedia Pte. The data-center operator runs five facilities, with capacity set to reach 30 to 35 megawatts by the end of 2026 before rising to 124 MW over the following three years through new sites and expansion of existing facilities, according to Cruz.
A listing of the venture is among the options being considered to fund further expansion, he said. "Anything related to the digital economy is valuated quite generously by the market."
| Capacity constraints in Thailand, Singapore and Malaysia mean the Philippines is the next destination for data-center customers, he said. "You'll see data traffic increase by probably three to five times in the next couple of years with AI." Still, the Philippines cannot rely solely on demand spilling over from Malaysia and Indonesia, according to a report by BMI, a unit of Fitch Solutions. To win large cloud projects, it will need to leverage its undersea cable links to developed Asian markets, alongside secured access to power and land. The country has 44 data centers, the second-fewest among the Asian markets tracked by BMI, with about 140 MW of live capacity and another 264 MW under construction or planned. At home, Globe is trying to catch up in a market led by rival PLDT Inc., whose data-center subsidiary VITRO Inc. is seeking up to 24.2 billion pesos ($387 million) in a real estate investment trust IPO. Converge ICT Solutions Inc. is also expanding its own footprint. The government is seeking to draw more of that data-center investment onshore. President Ferdinand Marcos Jr. signed an executive order in July requiring the government's most sensitive digital information to remain under Philippine jurisdiction, potentially boosting demand for local facilities. ALSO READ: Jio Gains 2.4 Million Mobile Users In August, Airtel 2.1 Million: TRAI Data The data-center bet follows Globe's success with Mynt, the company behind GCash, the Philippines' largest mobile wallet. Mynt was valued at $5 billion in its last funding round in 2024 and its IPO is expected to raise about 60 billion pesos next month that would be the country's biggest. Globe intends to remain Mynt's single largest shareholder as the fintech expands its credit, investment, savings and insurance services, Cruz said. |
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