Equinix Buying Three Philippine Data Centres to Enter Fourth SE Asia Market

Equinix has agreed to acquire three data centres in the Philippines, marking the digital infrastructure giant’s entry into a fourth Southeast Asian country.

The US-based operator is buying the trio of carrier-neutral assets from Manila-based tech firm Total Information Management in an all-cash transaction, NASDAQ-listed Equinix said in a release. No price was disclosed.

The pending acquisition, which is expected to be completed during the second half of 2024, will expand Equinix’s foothold in the region after the company previously announced projects in Indonesia, Malaysia and Singapore.

“This expanded digital infrastructure will also enable our customers to thrive and embrace digital transformation, harnessing the potential of emerging technologies like private AI,” said Equinix Asia Pacific president Jeremy Deutsch.

Digital Economy Demand

Founded in 1985 as an IT equipment and peripherals supplier, Total Information Management has developed at least four data centres in the Philippines.

“Equinix’s strong reputation and expertise in the industry make them the ideal partner to take our data centre business to new heights,” said chairman Jose Mari M Antunez. “While TIM will continue to remain as a system integrator, helping our customers through their digital transformation strategies, this deal will bring immense benefits to our customers.”

The Philippines’ digital economy is expected to reach $35 billion in value by next year, Equinix said, citing research by Google, Temasek and Bain & Co, and the country is seeing an attendant surge in demand for digital infrastructure services.

The latest news comes one month after Manila-based construction firm Endec Group announced plans to invest $2.7 billion developing a 300-megawatt facility in Tarlac, near Angeles City, as the nation’s largest data centre.

Regional Footprint Grows

Equinix has been expanding rapidly in Southeast Asia, having entered Malaysia in November 2022 through a $40 million investment in a hyperscale facility in Johor, which came on the heels of a $74 million commitment for an Indonesian facility in central Jakarta.

The company received a permit in 2023 to develop its sixth Singapore data centre after the city-state’s government lifted a four-year moratorium on new builds.

Elsewhere in Asia, Equinix has continued its Indian expansion with the June announcement of its first data centre project in Chennai and fifth overall in the country. With an initial investment of $65 million, the facility will span nearly 6 acres (2.4 hectares) in Chennai’s southern Siruseri suburb and is set to open in the fourth quarter of this year.

That development followed last year’s launch of Equinix’s fourth Mumbai data centre, a $42 million project interconnected with some of the company’s existing facilities in the commercial capital.