• PLDT is targeting a fourth-quarter launch for what could become the Philippines’ first data center IPO, potentially raising up to $400 million.
• The initial portfolio will include eight income-generating VITRO data centers with a combined capacity of 27 megawatts.
• Manuel V. Pangilinan says the bigger challenge is policy, calling for data sovereignty rules and a clear blueprint to help position the Philippines as an AI and technology hub.
PLDT Inc. is seeking to cash in on surging demand for AI infrastructure through what could become the Philippines’ first data center initial public offering (IPO).
This comes artificial intelligence, cloud computing and data storage fuel a global rush into data centers, turning what were once viewed as utility-like facilities into some of the most sought-after real estate assets.
“[The IPO] will happen this year. Fourth quarter, hopefully,” said PLDT chair and CEO Manuel V. Pangilinan on the sidelines of the company’s annual stockholders’ meeting on Tuesday.
Pangilinan, who is recovering from a recent knee procedure, said PLDT is tapping the real estate investment trust, or REIT, framework, which allows businesses with recurring income streams to list on the stock exchange.
Not your typical real estate
Unlike traditional office towers or shopping malls, data centers are highly secure facilities that house servers and networking equipment.
Their tenants are not department stores or restaurant chains but the digital economy itself: from government agencies and businesses to tech firms, social media platforms and AI companies.
Pangilinan said the initial REIT assets will include eight income-generating VITRO data centers with a combined capacity of 27 megawatts.
Data center capacity is measured in megawatts because of the massive amount of electricity these facilities consume, although newer projects are increasingly powered by renewable energy sources.
Eventually, PLDT can fold in larger assets like its data center campus in Sta. Rosa, Laguna, which will have around 50-MW capacity once completed, he said.
Pivot from a stake sale
PLDT had earlier explored bringing in a strategic investor for its data center business, similar to rival Globe Telecom’s decision to tap Singapore’s ST Telemedia Global Data Centres.
But Pangilinan said disappointing valuations pushed the company toward a public listing instead.
He added they’re planning to sell around 49 percent economic interest in the REIT.
What is the government’s plan?
Getting a data center REIT to market amid volatile conditions is one challenge.
A bigger frustration for Pangilinan is what he sees as the government’s lack of a clear roadmap for the industry.
For example, he called for stronger data sovereignty rules, which would require government agencies and potentially local companies to store their data in the Philippines rather than overseas.
“They should require both government and private sector companies to store their data here, like other countries have required,” Pangilinan said.
“As for foreign companies, that is their data and they can store it wherever they want. But at least Philippine companies should store their data here. We should patronize our own companies,” he added.
He explained that government data requirements alone could support about 270 megawatts of data center demand, more than double the country’s current capacity of roughly 120 megawatts.
Beyond the IPO
“They talked about the Pax Silica in the Luzon Corridor. To recreate Silicon Valley in the Philippines, what do you need?” he said.
“First, you need infrastructure and facilities. What are those? How big?” Pangilinan said.
“Secondly, and more importantly, people. IT engineers, tons of them, millions of them. Do we have them? We don’t,” he said.
Pax Silica is a US-led effort to bring together friendly nations to build the industries powering the digital economy, including chips, AI, data centers and advanced manufacturing.
Pangilinan said more details are needed, starting with a clear blueprint for the private sector.
He also argued that government need not wait for legislation before providing direction.
“I think PLDT should be part of that. We’d like to do it, we just need a blueprint,” he said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
