Local telco giant PLDT is in talks with Japan’s Nippon Telegraph and Telephone (NTT) to sell up to 49 percent of its data center business.
Managed through its subsidiary ePLDT, the data centers could be valued at as much as $750 million in the deal, according to people privy to the discussions but who wished to remain anonymous. PLDT currently operates eleven data centers across the Philippines, with plans for a twelfth data center underway.
PLDT’s move to offload data centers aligns with NTT’s increasing interest in data centers, a market that is believed to expand rapidly amid the rise of generative AI. NTT previously announced a $10 billion investment for fiscal years 2023 to 2027 as part of its data center business expansion. The Japanese company manages more than 200 data centers at present worldwide, including new campuses that are under construction.
As for PLDT, the potential sale offers a pathway to reduce its debt, which remains substantial despite previous sale of assets including its tower infrastructure, and to fund new projects in the data center business.
Recent data from the London Stock Exchange Group shows an increase in PLDT’s share price by 5.6 percent this year, giving the company a market value of $5.09 billion as of May 7. Meanwhile, NTT, which is Japan’s largest phone company, boasts a market value of $99.9 billion.
Should everything go without a hitch, the deal is expected to finalize later this year.
Source: Channel News Asia