AyalaLand and FLOW partner for data center development

AyalaLand Logistics Holdings Corp (ALLHC) and FLOW Digital Infrastructure have entered into a framework agreement to bolster the development of carrier-neutral data centers in the Philippines.

The companies note that the Philippines is increasingly becoming a popular location for hosting data centers in the APAC region because of its strategic location as a gateway from the Pacific to Asia.

Additionally, the Philippines is a preferred destination because of its superior connectivity and rich natural resources, which facilitate renewable energy.

The data center market in the country is anticipated to see double-digit annual growth, which the companies say is driven by a major uptake in data consumption, digitisation, 5G connectivity, and data localisation trends.

The initial roll-out will target the delivery of a 4.5MW of capacity as Phase 1 of a hyperscale data center campus, as early as 4Q 2023.

Moreover, combining FLOW's modular product deployment approach with a strong focus on connectivity and sustainability will assist in maximising design flexibility and fast-tracking time-to-market.

The joint venture is in accordance with the terms of FLOW's ongoing Asia Pacific expansion utilising the team's design, development and operation expertise in next-gen data centers.

The company was founded in 2021 by alternative investment firm PAG, which has USD$50 billion in assets under management, including USD$2 billion in data center assets.

FLOW is also a regional platform that offers customised solutions to meet the increasing demand for digital infrastructure in the APAC region.

This includes investing and operating in the key physical assets of the digital infrastructure ecosystem such as cloud, hyperscale, enterprise data centers, network and fiber assets.

"We are pleased to partner with ALLHC as they prepare to make this significant contribution to developing digital infrastructure capabilities in the Philippines," FLOW Digital Infrastructure CEO Amandine Wang says.

"The decades of design and operational experience of the FLOW team, combined with ALLHC's established record in industrial real estate development, makes this an ideal partnership to meet the rising demand for digital infrastructure in the country.

An industrial real estate company in the Philippines, ALLHC has a presence across six growth areas in the country, with its core business in industrial parks, warehouses, cold storage facilities, and commercial leasing.

Among its developments are the industrial estates, Laguna Technopark, Pampanga Technopark, Cavite Technopark, and Laguindingan Technopark in Misamis Oriental.

"This investment will contribute to the Philippines' transition to a digital economy," AyalaLand president and CEO of ALLHC and senior vice president Jose Emmanuel H. Jalandoni says.

"Furthermore, we believe this partnership with FLOW enhances the value of ALLHC's industrial landbank.