Frederic C. DyBuncio, president and CEO of SM Investments, cited high power costs and their relatively small stake in the firm led by Nik De Ynchausti, who belongs to one of the country’s oldest business clans.
“Right now we’re not really focused on data centers because, from our perspective, the power cost is very expensive, and the small minority stake we have in a data center,” DyBuncio said, adding that SM “will probably sell that eventually.”
Based on its annual report, SM owned 18 percent of YCO Global Cloud Centers Holdings after raising its stake from 10 percent the previous year.
DyBuncio said SM was ready to sell their shares to interested buyers and that a potential transaction might be looming as the YCO Group lines up new investors for the stake.
“They’re in discussions with a potential buyer,” DyBuncio said.
In 2024, SM recognized a P200 million loss in its data center investment, the financial report showed.
Booming data center sector
The business is among the group’s portfolio firms, which are strategically positioned in core fast-growing sectors, complementing SM’s flagship property, banking, and retail segments.
YCO Cloud is part of an emerging group of data center players targeting the surge in demand from hyperscalers, cloud providers, and enterprise users fueling the Philippines’ digital economy.
Its first data center, Malvar One, is located in the Light Industry and Science Park IV, a PEZA-registered zone located in Malvar, Batangas.
The company is backed by the Ynchaustis, whose 200-year legacy helped shape the country’s early industrialization.
Other major data center operators include Globe Telecom-backed STT GDC Philippines, which is building the country’s largest facility in Fairview; as well as PLDT Inc. and Converge ICT Solutions.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
