Aboitiz InfraCapital to build first data center this year

MANILA, Philippines — Aboitiz InfraCapital Inc. (AIC) is targeting to finally start the construction of a data center soon, fleshing out the partnership inked with United States-based technology firm EdgeConneX (ECX) less than two years ago.

Cosette Canilao, AIC president and CEO, told the Inquirer they were hoping to begin building their first data center within the year.

The companies are still finalizing the location and the data capacity of the hub, which is designed to cater to critical servers and information technology networks, she said.

READ: Aboitiz ventures into data center business

“We’re waiting for the right time and condition to start building,” Canilao said.

AIC and ECX formalized their collaboration in October 2022, which involved the creation of two joint venture companies that would build, operate and maintain data center facilities in the country.

The initial data center is set to rise near the National Capital Region. A secondary facility is eyed to be situated in the Greater Manila Area.

The Aboitiz Group unit made its foray into data centers at a time of increasing demand for infrastructure supporting flow of data due to heightened digitalization.

READ: Data center boom cues PH as tech hub

Among the demand drivers are artificial intelligence and cloud storage, Nokia CEO Pekka Lundmark said, projecting additional investments in this sector moving forward.

In 2023, the Department of Information and Communications Technology said it was expecting the local data center capacity, currently at 60 megawatts (MW), to grow by 500 percent in the next two years with more players setting up shops here or expanding existing facilities.