ALLHC and FLOW Digital Infrastructure enter into a framework agreement for data center development in the Philippines

AyalaLand Logistics Holdings Corp. (“ALLHC”; PSE: ALLHC), a subsidiary of Ayala Land, Inc. (“ALI”; PSE: ALI), and FLOW Holdings I Philippines Pte. Ltd., (“FLOW”), the vehicle of FLOW Digital Infrastructure, have signed a framework agreement to develop carrier-neutral data centers across the Philippines, subject to the terms and conditions as may be mutually agreed.

The Philippines is rapidly emerging as one of the preferred locations in the APAC region to host data centers due to its strategic location as a gateway from the Pacific to Asia, superior connectivity, and rich natural resources for renewable energy. The Philippines data center market is expected to experience double-digit annual growth, driven by a significant increase in data consumption, digitization, 5G connectivity, and data localization trends.

The initial roll-out will target the delivery of a 4.5MW-capacity facility ready for service by 4Q 2023. FLOW’s modular product deployment approach, combined with a strong focus on connectivity and sustainability, will help maximize design flexibility and accelerate time-to-market.

The joint venture is pursuant to FLOW’s ongoing Asia-Pacific expansion, leveraging the team’s industry-leading design, development, and operation expertise in next-generation data centers. FLOW is a regional platform providing customized solutions to meet the growing demand for digital infrastructure in Asia-Pacific. FLOW was launched in 2021 by PAG, a leading alternative investment firm focused on the Asia Pacific with USD50 billion in assets under management, including USD2 billion in data center assets.

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

“This investment will contribute to the Philippines’ transition to a digital economy. Furthermore, we believe this partnership with FLOW enhances the value of ALLHC’s industrial landbank,” said Jose Emmanuel H. Jalandoni, President and CEO of ALLHC and Senior Vice President of Ayala Land.

Discussions on the data center projects are ongoing. When appropriate, ALLHC will make relevant announcements in accordance with the rules of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).

UBS AG Singapore Branch[1] acts as sole financial advisor to ALLHC on the transaction.

[1] UBS AG is incorporated in Switzerland with limited liability. UBS AG has a branch registered in Singapore (UEN S98FC5560C).