Ayala Land partners PAG vehicle to build data centres in Philippines

Photo by Jordan Harrison on Unsplash

The Philippines-listed property giant Ayala Land has teamed up with FLOW Digital Infrastructure to develop carrier-natural data centres across the country, according to an announcement.

FLOW was launched in 2021 by alternative investment firm PAG.

The joint venture is between Ayala Land Logistics Holdings, a subsidiary of Ayala Land, and FLOW Holdings I Philippines, the investment vehicle of FLOW Digital Infrastructure.

The JV will initially deliver a 4.5MW-capacity facility by the fourth quarter of 2023. Ayala Land said discussions on the data centre projects are ongoing.

The data centre partnership comes as the Philippines rapidly emerges as a preferred location in the Asia-Pacific region for hosting data centres due to its strategic location.

The Philippines data centre market is projected to experience double-digit annual growth, driven by a significant increase in data consumption, digitisation, 5G connectivity and data localisation trends, according to the announcement.

“This investment will contribute to the Philippines’ transition to a digital economy. Furthermore, we believe this partnership with FLOW enhances the value of [AyalaLand Logistics Holdings Corp]’s industrial land bank,” said Jose Emmanuel H. Jalandoni, president and CEO of AyalaLand Logistics and senior vice-president of Ayala Land.

The joint venture is pursuant to FLOW’s ongoing Asia-Pacific expansion, leveraging the team’s design, development and operation expertise in next-generation data centres.

FLOW Digital Infrastructure invests and operates in the digital infrastructure ecosystem, including cloud, hyperscale and enterprise data centres, as well as network and fibre assets, across the Asia-Pacific.

The firm leverages the capital and resources of PAG Real Assets, the real estate and infrastructure investment strategy of PAG.

PAG, led by Chinese dealmaker Weijian Shan, invests across asset classes, including private debt, private equity, venture capital, real estate, infrastructure and hedge funds. It has filed for an initial public offering in Hong Kong that could reportedly raise up to $2 billion.

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