Philippines-based Megawide Construction Corp. has entered into an agreement with Evolution Data Centres (EDC) to build a carrier-neutral data center in the country.
The project, planned to be situated in the province of Cavite, will occupy four hectares, with the first phase expected to kick off in the first quarter of 2024. Details of the joint venture agreement between both parties confirm that the proposed data center could cost up to $300 million.
As per the agreement, Megawide will own a 49% stake in the new entity, while Singaporean-based EDC will control a 60% stake. The project still requires approval from the Philippine Competition Commission (PCC), and upon completion, it will be the fifth data center in the country.
For Megawide, the deal marks its first foray into the digital infrastructure space as it tries to diversify its holdings from construction and engineering. Megawide’s Chief Business Development Officer Jaime Feliciano noted that the switch was necessary to keep up with the growing digitization trend.
“We are delighted to be partnering with Megawide to develop this innovative data center in this exciting high-growth region,” said Darren Webb, EDC’s CEO. “This project will deliver the very latest digital infrastructure to meet the needs of a growing, content-hungry population.”
The $300 million data center will place a premium on Artificial Intelligence (AI), cloud storage, and data analytics. Webb noted that, unlike other existing data centers in the region, the joint project will be powered by renewable energy to make it environmentally sustainable.
Currently, three of the Philippines’ data centers are located in the National Capital Region, while the fourth is in Pangasinan. Experts claim that the proposed data center will provide business continuity infrastructure, backup components for telecommunications and other IT infrastructure.
A wave of digitization in the Philippines
The Philippines has thrown its hat in the ring for the title of being the world’s leading blockchain technology hub. Several factors give the Southeast Asian country a head start including its technology-savvy population and friendly regulations.
According to data from the Philippine Economic Zone Authority (PEZA), foreign investments in the digital sector rose by an impressive 83.69% in January compared to the figures from 2022. As the country marches towards full adoption of blockchain and Web3, regulators are not throwing caution to the wind as they continue to exercise a measure of restraint.
“We’re probably more ahead than anywhere else. I’ve been to other countries where regulations stifle the growth, especially where it intersects with banking and fiat money,” said Mark Vernon, Vice Chairman of the Fintech Philippines Association.
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