Higher contribution to PLDT eyed by ePLDT

MANILA, Philippines — The data center builder of Pangilinan-led PLDT Inc. hopes to increase its share in the revenue of its parent to as much as 20 percent by the end of the decade.

ePLDT Inc. president and CEO Victor Genuino believes that the company can increase its contribution to PLDT revenues by seven times to 20 percent within the next 10 years.

At present, ePLDT corners about 70 percent of the demand for data centers in the Philippines, and this is expected to increase further with its expansion in the emerging market, he said.

In 2022, the information and communications technology (ICT) segment of PLDT made up less than three percent, or P5.4 billion, of revenues generated by the telco. The amount also included the P2.9 billion that ePLDT raised from data center clients.

The ICT business of PLDT is projected to post the same results in 2023. As of September 2023, ePLDT has chipped in P3.5 billion to PLDT’s earnings of P142.3 billion.

Genuino said ePLDT will double its data center capacity by midyear with VITRO Sta. Rosa – its 11th and largest infrastructure to date – slated to open in July.

ePLDT operates 10 facilities for a capacity of 50 megawatts, but this will be boosted by the 50-MW that VITRO Sta. Rosa would bring.

Genuino estimates that ePLDT spent roughly $350 million to build VITRO Sta. Rosa, betting on the prospects of the Philippines to become a data center hub in Southeast Asia.

Based on latest records, ePLDT handles more than 7,500 racks in its data centers, with utilization rate reaching 74 percent. VITRO Sta. Rosa will add about 4,500 racks, giving ePLDT another set of storage spaces that can be offered to clients.

ePLDT is planning to construct its 12th, 13th and 14th data centers within the decade, optimistic that the business will grow as the world goes digital. At present, ePLDT is searching for possible sites where it can locate these facilities.

Based on previous estimates, Genuino said ePLDT would invest at least $6 million for each MW of a data center.

Connectivity giants like PLDT are pouring capital in the development of data centers to cater to the growing requirements of tech mammoths like Amazon, Google and Meta that are always on the lookout for facilities where their applications and information can be stored.