2 US firms eye setting up hyperscale data centers in Luzon

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MANILA, Philippines — Two companies based in the United States are eyeing to set up hyperscale data centers in Luzon, Malacañang said Thursday.

The Presidential Communications Office (PCO) said US-based infrastructure development firm Diode Ventures LLC and ENDEC Development Corp. have signified their intention to prop up hyperscale data centers in Tarlac and New Clark City to President Ferdinand “Bongbong” Marcos Jr. himself in a meeting in Malacañang.

“This is important for us. We’re left behind when it comes to digitalization. That’s why the push for data centers, fiber optics and satellite is one of our priorities,” Marcos said, quoted by the PCO, noting that the projects would enable the Philippines to catch up with other countries in terms of digitalization.

Hyperscale data centers are massive business-critical facilities built by companies with vast data processing and storage needs and are designed to efficiently support robust, scalable applications that are often associated with big data-producing companies such as Google, Amazon, Facebook and Microsoft.

Unlike traditional data centers, hyperscale data centers exceed 5,000 servers and 10,000 square feet.

“We are really pushing [for] digitalization. Thank you for your continuing interest in the Philippines,” the President added

Malacañang claimed the establishment of the hyperscale data centers is a “result of a productive roundtable discussion in New York in September last year.”

ENDEC said it is committed to starting the project in the first quarter of 2024 and will work with a local Renewable Energy (RE) company for its electricity requirements to support its energy-intensive data center operations.

The company said it would use 100 percent renewable energy sourced from solar, wind and hydro to sustain its 700 MW monthly power consumption of its data centers.

According to PCO, ENDEC said it would secure separate energy sources to ensure that the country’s power grids will not be affected by its operation.

In September last year, ENDECGROUP, Inc. and Diode Ventures, LLC joined the roundtable meeting on digital infrastructure during Marcos’ visit to New York.

ENDEC Development Corp., a subsidiary of ENDECGROUP, Inc., is the main developer of the projects, the PCO said.

In the past 22 years, ENDEC, Inc. delivered more than 100 projects globally, handling projects such as water systems, blending plants, schools, training centers, specialized diagnostic laboratories and landing zone pads.

Diode Ventures, LLC, a subsidiary of the global company Black & Veatch (BV), is the development partner of ENDEC Development Corp.

Established in 2017, the company specializes in the development of data centers and renewable energy projects.

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