Philippine conglomerate SM Investments Corp., part of the Sy family, has announced its plan to exit the data centre business.
It plans to divest its stake in YCO Global Cloud Centres.
SM Investments’ president and CEO, Frederic C. DyBuncio, has cited high electricity costs in the country and small stakes to exit the business.
The exit plan comes just a year after SM raised its stake in YCO from 10 percent to 18 percent.
“Right now, we are not really focused on data centres because from our perspective, the power cost is very expensive and the small minority we have in the data centre business we’ll probably sell that eventually,” said DyBuncio, as reported by the Philippine Star.
He noted that large hyperscalers prefer Malaysia and Vietnam.
These markets offer lower power costs and fewer natural disasters than the Philippines.
YCO Global Cloud Centres is a Philippine-based digital infrastructure company that develops and operates sustainable, carrier-neutral, greenfield data centres.
