Megawide diversifies into building data centers
In a bid to diversify its revenue channels, Megawide Construction Corp. is keen on establishing a digital infrastructure portfolio, which have been proven to be crucial in ensuring business continuity.
Jaime Raphael Feliciano, chief business development officer at Megawide, told the Inquirer this space was seen to flourish given the increasing demand for digitalization.
“Our strategy is to pursue areas of business we see as scalable, high-growth and cycle resilient, and digital infrastructure fits the profile. We are open to explore other allied opportunities in the digital infrastructure space in the future,” he said.
Last month, Feliciano revealed Megawide’s foray into data centers, which are facilities that store critical applications and information.
He earlier shared they have already signed the preliminary documents for this venture with a foreign partner, but declined to give further details yet due to confidentiality concerns.
“Megawide’s decision to develop data centers signals its entry in the digital infrastructure space. Developing a seed asset and eventually a portfolio of assets is our top priority at this time. Basically, we want to first have a proof of concept before we go fully into the business,” he said.
Article continues after this advertisement“In addition, we also see a promising market in the digital infrastructure space due to technological advancements. We see very attractive growth opportunities in this industry,” he said.
Article continues after this advertisementAccording to real property expert Knight Santos Frank, the data center capacity in the country was projected to grow to 220 megawatts (MW) from the current 94 MW based on existing and potential projects.
Recently, Megawide and GMR Airports International BV—which comprise the GMR-Megawide Cebu Airport Corp.—inked a P25-billion share subscription and transfer agreement with Aboitiz InfraCapital involving the Mactan Cebu International Airport. By 2024, the Aboitiz-led company will fully take over the Cebu airport.
Megawide and GMR were advised by BDO Capital, Romulo Mabanta Buenaventura Sayoc & de los Angeles while Shardul Amarchand Mangaldas & Co. AlphaPrimus Advisors and Gulapa Law advised the Aboitiz group.
Currently, its projects include Metro Manila Subway System, Suncity West Side City project, Newport Link project and Malolos-Clark Railway Phase 1 project.
“As a growing conglomerate, we need to ensure that we are still able to grow during economic downturns,” Feliciano said. INQ
