Globe Telecom Open to REIT Listing for Data Center Business Amid AI Boom

MANILA, Philippines — Globe Telecom Inc. is keeping the door open to eventually listing its data center business through a real estate investment trust (REIT), as booming demand for artificial intelligence (AI) pushes its available capacity closer to full utilization. According to Globe president and CEO Carl Cruz, a REIT remains among the options for ST Telemedia Global Data Centres (STT GDC) Philippines, although no firm plans are in place for now. READ: Globe sees ballooning data center demand “It’s always going to be on the table,” Cruz said in an interview with the Inquirer. He noted rival PLDT Inc. has already announced plans to list its data center arm Vitro Inc. as a REIT within this year. Cruz said should STT GDC decide to take the REIT path, it could provide another avenue for raising funds. “Of course, that’s always going to be a big plus for any operator. That’s why, as I said, it’s part and parcel of the conversation,” he added. PLDT is the country’s largest data center operator, accounting for about a third of the market. It is targeting to raise up to P24.2 billion from the planned listing of Vitro as a REIT. The listing will cover eight operational data centers with a combined IT-ready capacity of about 24 megawatts (MW). While STT GDC remains behind PLDT in the local data center market, Cruz said demand has been rapidly catching up with available capacity in recent months, driven largely by AI. READ: KKR, Singtel taking over data center powerhouse STT GDC STT GDC expects to have about 30 MW to 32 MW of operational capacity by yearend, which Cruz said would already be fully utilized. At its STT Fairview facility, the first level is already fully committed to customers, prompting the company to fit out the second floor as more prospective clients enter its pipeline. The first phase of STT Cavite 2 is also operational. Once all its facilities are fully fitted out, Cruz said STT GDC could have a total capacity of about 124 MW. “We build as the demand comes,” Cruz said, noting the high capital expenditure required for data centers. “But the last four months, the demand has been coming.” Asked whether STT GDC was keen on expanding to new sites in the Philippines, Cruz said the company continues to scout locations across the country, noting growing interest in New Clark City, which will host the planned Pax Silica hub. Both PLDT and Converge ICT Solutions Inc. have said they believe they should be part of the hub, which is being jointly developed by the Philippines and the United States as an industrial enclave focused on AI and advanced manufacturing. Cruz said Globe and STT GDC Philippines had already held preliminary talks with Pax Silica representatives. INQ