Megawide diversifies into building data centers
In an effort to diversify its revenue channels, Megawide Construction Corp. wishes to establish a portfolio of digital infrastructures, which have proven to be crucial in ensuring business continuity.
Jaime Raphael Feliciano, director of business development at Megawide, told the Inquirer that this space was set to thrive given the growing demand for digitization.
“Our strategy is to pursue areas of business that we see as scalable, high-growth and cycle-resilient, and digital infrastructure fits the profile. We are open to exploring other allied opportunities in the digital infrastructure space in the future,” he said.
Last month, Feliciano revealed Megawide’s foray into data centers, which are facilities that store critical applications and information.
He shared earlier that they had already signed the preliminary documents for this venture with an overseas partner, but declined to give further details for confidentiality reasons.
“Megawide’s decision to develop data centers marks its entry into the digital infrastructure space. Developing seed capital and eventually an asset portfolio is our top priority right now. Basically, we want to have a proof of concept first before we fully jump into the business,” he said.
“Additionally, we also see a promising market in the digital infrastructure space due to technological advancements. We see very exciting growth opportunities in this industry,” he said.
According to real estate expert Knight Santos Frank, data center capacity in the country is expected to increase to 220 megawatts (MW) from the current 94 MW based on existing and potential projects.
Recently, Megawide and GMR Airports International BV, which comprise GMR-Megawide Cebu Airport Corp., signed a 25 billion peso share subscription and transfer agreement with Aboitiz InfraCapital regarding Mactan Cebu International Airport. By 2024, the company led by Aboitiz will fully take over Cebu airport.
Megawide and GMR were advised by BDO Capital, Romulo Mabanta Buenaventura Sayoc & de los Angeles while Shardul Amarchand Mangaldas & Co. AlphaPrimus Advisors and Gulapa Law advised Aboitiz Group.
Currently, its projects include Metro Manila, Suncity West Side City Project, Newport Link Project and Malolos-Clark Railway Phase 1 Project.
“As a growing conglomerate, we need to make sure we’re still able to grow during economic downturns,” Feliciano said. INQ
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