Manila: Globe Telecom Inc. is betting on the rapid growth of artificial intelligence to turn its data-centre business into its next billion-dollar growth engine, as the Philippine telecom giant prepares for a major expansion in computing infrastructure.
The company plans to spend at least $1 billion in capital expenditure in 2027, with much of the investment directed towards its data business, President and Chief Executive Officer Carl Raymond Cruz said in an interview on Monday.
Globe expects capital expenditure to remain equivalent to between 23 per cent and 28 per cent of its revenue over the next few years as it continues to strengthen its network and expand its presence in the digital economy.
AI drives demand for computing infrastructure
The growing adoption of AI is creating unprecedented demand for computing capacity, cloud services and data centres worldwide. Technology companies and cloud providers are investing billions of dollars in infrastructure to support AI applications and increasingly data-intensive services.
Globe, the Philippines’ second-largest telecommunications company, sees this shift as an opportunity to diversify beyond its traditional telecom operations.
Cruz said the company would continue investing in its network but would focus spending on selected and highly prioritised areas, particularly those connected with data and the digital economy.
The strategy comes as telecom operators across Asia seek new revenue streams from the rapid expansion of cloud computing, artificial intelligence and digital services.
Globe expands data-centre capacity
Globe already has a presence in the Philippine data-centre market through ST Telemedia Global Data Centres Philippines.
The venture is backed by Globe’s parent company Ayala Corp. and Singapore Technologies Telemedia Pte. It currently operates five facilities in the Philippines.
According to Cruz, the operator’s capacity is expected to reach between 30 and 35 megawatts by the end of 2026.
That capacity could increase substantially over the following three years. Plans involving new facilities and expansion of existing sites are expected to take total capacity to about 124 MW.
The expansion reflects expectations that AI and cloud computing will drive significantly higher demand for data-centre infrastructure.
Cruz said data traffic in the Philippines could increase by three to five times over the next few years as AI adoption accelerates.
Data-centre listing under consideration
Globe is also considering different ways to finance the expansion of its data-centre business.
One option being considered is a potential listing of the venture. Cruz said the company was evaluating the possibility as demand for digital-economy assets continues to attract strong interest from investors.
A listing could provide an additional source of capital for further data-centre development while potentially allowing the business to tap into the market’s interest in digital infrastructure.
However, Globe’s plans come as competition in the Philippine data-centre industry increases.
Philippines seeks larger share of Asian data-centre market
The Philippines is seeking to benefit from capacity constraints in established Asian data-centre markets such as Singapore, Malaysia and Thailand.
Cruz said those constraints could encourage data-centre customers to look towards the Philippines for additional capacity.
However, the country faces competition from other emerging markets and cannot rely solely on demand moving out of neighbouring countries.
A report by BMI, a unit of Fitch Solutions, said the Philippines would need to strengthen several advantages to attract major cloud projects.
These include its undersea cable connections to developed Asian markets, reliable access to electricity and availability of land for large infrastructure projects.
The country currently has 44 data centres, according to the BMI report cited in the source material. That was the second-lowest number among the Asian markets tracked by the research firm.
The Philippines had around 140 MW of live data-centre capacity, with another 264 MW either under construction or planned.
Globe faces competition from PLDT and Converge
Globe’s expansion is taking place in an increasingly competitive domestic market.
Rival PLDT Inc. has established a major presence through its data-centre subsidiary VITRO Inc., which is also pursuing expansion.
VITRO is seeking to raise as much as 24.2 billion pesos, or approximately $387 million, through a real estate investment trust initial public offering to support its data-centre ambitions.
Converge ICT Solutions Inc. is another Philippine telecom company expanding its data-centre footprint.
The competition highlights the growing importance of digital infrastructure for Philippine telecom companies as businesses increasingly rely on cloud services, AI applications and data-intensive technologies.
Government seeks more data infrastructure onshore
The Philippine government is also taking steps that could support demand for domestic data-centre capacity.
President Ferdinand Marcos Jr. signed an executive order in July requiring the country’s most sensitive government digital information to remain under Philippine jurisdiction.
The policy could increase demand for local data centres capable of meeting government requirements for data security, storage and jurisdiction.
For operators such as Globe, government demand could become another source of growth alongside commercial cloud and AI customers.
Mynt IPO provides another growth story
Globe’s data-centre strategy comes as its fintech arm Mynt prepares for a potentially record-breaking Philippine IPO.
Mynt is the company behind GCash, the Philippines’ largest mobile wallet. The fintech was valued at $5 billion during its 2024 funding round.
Its planned IPO is expected to raise around 60 billion pesos next month, which would make it the largest listing of its kind in the Philippines if completed at that size.
Globe intends to remain Mynt’s single largest shareholder as the fintech expands beyond mobile payments.
Mynt is developing businesses across credit, investments, savings and insurance, broadening the range of financial services available through its platform.
Globe targets multiple digital growth engines
The combination of Mynt’s fintech expansion and Globe’s data-centre ambitions gives the company exposure to two rapidly developing areas of the digital economy.
While GCash provides Globe with exposure to digital financial services, data centres offer an opportunity to benefit from the infrastructure requirements created by cloud computing and AI.
The company is therefore shifting a greater portion of its investment towards areas where data consumption and digital services are expected to grow rapidly.
For the data-centre business, the immediate challenge will be converting projected AI demand into long-term customers while securing enough electricity, land and connectivity to support large facilities.
Globe’s planned $1 billion-plus investment in 2027 signals the scale of that ambition. If the company expands its data-centre capacity as planned, AI and the wider digital economy could become an increasingly important part of its growth strategy alongside its traditional telecommunications operations.