ST Telemedia Global Data Centres (STT GDC) Philippines is making significant investments in its data center infrastructure, positioning the country as a key digital hub in Southeast Asia. In a recent media roundtable, Carlo Malana, President and CEO of STT GDC Philippines, shed light on the company’s bullish outlook, strategic investments, and its proactive approach towards the burgeoning Artificial Intelligence (AI) landscape.
While specific figures for the Fairview and Cavite data center projects were not publicly disclosed, Malana hinted at the scale of investment, stating that the Fairview facility alone represents a “north of a billion dollars” commitment, as quoted by their President & Group CEO Bruno Lopez during the grand opening of the facility. Malana elaborated that typical data center costs range from US$11 to US$12 million per megawatt, offering a glimpse into the substantial financial backing for these ventures. These investments are primarily directed towards essential infrastructure such as power generators, air conditioning systems, UPS units, and transformers, ensuring the high availability and reliability demanded by their clientele. Notably, these figures exclude the cost of the actual servers and high-powered AI GPUs, some of which can cost several million dollars each.
Malana addressed concerns about the Philippines lagging behind its neighbors in data center development, emphasizing that the current demand is largely driven by the financial services sector and telecommunications companies. However, he expressed strong optimism for future growth, fueled by the increasing adoption of cloud-first policies by enterprises. He pointed out the inherent inefficiencies of relying solely on data centers in locations like Singapore, which is facing capacity constraints. The latency and cost associated with routing data back and forth between the Philippines and offshore data centers present a compelling case for localizing data infrastructure.
The executive, at the sidelines of the recently concluded STT GDC “Practical Insights” event in BGC, also addressed the common perception that power costs are high in the Philippines. He explained that although retail electricity rates may appear elevated, STT GDC Philippines benefits from wholesale power procurement, enabling the company to access competitive pricing comparable to that in Thailand and Malaysia. He reaffirmed the company’s strong commitment to sustainability, pointing to the company’s global goal of running on 100% renewable energy. This includes incorporating energy-efficient infrastructure and water-saving technologies in its local data centers. He also cited a recent Memorandum of Agreement with Ayala Corporation and ACEN, which aims to harness renewable energy and optimize land use for the development of future data centers.
A key focus of the media round table discussion was the integration of AI into the data center ecosystem. Malana explained the concept of Retrieval Augmented Generation (RAG), highlighting how AI agents can research and incorporate external information into their responses, making them powerful tools for various applications, including assisting media professionals with background research. To facilitate the adoption of AI, STT GDC Philippines launched the AI Synergy Lab, featuring the country’s first liquid-cooled, GPU-powered server running in production. This initiative aims to empower businesses to leverage AI by bringing the technology closer to their data, eliminating the need to transfer sensitive information to remote cloud environments.
Addressing cybersecurity concerns, particularly in light of recent reports of cyber intrusions, Malana emphasized that while STT GDC Philippines focuses on physical security with multi-layered systems, the cybersecurity of the data residing on their servers remains the responsibility of their clients. However, the company maintains stringent physical access controls and protocols to safeguard their facilities.
Malana acknowledged the increasing power demands of AI and high-density computing. STT GDC Philippines is proactively designing its new data centers, such as the one in Fairview (QC), with higher power density capabilities and liquid cooling infrastructure to accommodate the next generation of AI hardware. They are also considering heavier floor loading capacities and higher ceilings to support the weight and infrastructure requirements of advanced AI deployments.
In terms of manpower, Malana noted that data centers are not direct high-labor industries but generate significant indirect employment in construction, maintenance, and related sectors. STT GDC Philippines actively recruits and trains local mechanical and electrical engineers through programs like their recent “Power Up” initiative, demonstrating their commitment to nurturing local talent in this critical infrastructure sector.