PLDT puts up new unit for data centers

MANILA, Philippines — Telco leader PLDT Inc. has formed a new unit under its technology arm, delegating it with the task of building and operating data centers.

PLDT yesterday announced it is establishing VITRO Inc. to serve as its dedicated company for data center buildup, doubling down on efforts to attract tech giants to consider the Philippines as their next investment site.

VITRO will be headed by Victor Genuino, also the president and CEO of ePLDT.

Citing a report from Structure Research, PLDT said the data center market in the Philippines has reached $219 million as of 2023. The industry is projected to expand by an average of 36 percent until 2028, as enterprises look for spaces where they can store their data.

A separate study from property analyst JLL showed that the bulk of the data center requirements are coming from hyperscalers, demanding as much as 36 kilowatts per rack. Hyperscalers refer to tech giants such as Amazon, Google and Meta whose businesses are loaded with data.

In this context, PLDT finds both the opportunity and urgency to put up a designated unit for the development and management of data centers.

VITRO operates 10 facilities that combine for a capacity of 50 megawatts, but the company will double this once VITRO Sta. Rosa opens in July.

ePLDT spent at least $350 million to develop VITRO Sta. Rosa, its 11th and largest data center, and its activation will raise VITRO’s capacity to an industry-leading 99.5 MW.

VITRO has no plans of hitting the brakes anytime soon, as it studies the possibility of raising a 12th, 13th and 14th facility. Genuino believes that demand for data centers will only go up from here on, especially in the advent of artificial intelligence (AI).

“The surge of AI necessitates a rethink in the way we design and build our facilities and an even deeper focus on how we innovate. The creation of VITRO Inc. allows us to be more agile as we adapt to the evolving needs of the digital market and build more world-class facilities that would advance the Philippines’ digitalization,” Genuino said.

PLDT increased its data center revenues by 10 percent to P3.2 billion in 2023, from P2.9 billion in 2022, hinting that the business is on its way up.

VITRO expects its contribution to PLDT’s income to pick up in the future, as it corners about 70 percent of the demand for data centers in the Philippines.