PLDT to Sell 49% of its Data Centre Business to NTT

PLDT, the largest telecommunications group in the Philippines, is currently in discussions with Japan's Nippon Telegraph and Telephone (NTT) to sell up to 49 percent of its data center business, PLDT Chairman Manuel Pangilinan confirmed to Reuters on Tuesday.

Sources familiar with the matter, who requested anonymity as the talks were private, stated that the deal could value PLDT's data center business at $750 million. However, PLDT declined to comment on the valuation, and NTT did not respond to requests for comment.

NTT, Japan's largest phone company with a market value of $99.9 billion, according to LSEG data, could potentially reach an agreement with PLDT in the second half of this year. The proceeds from the sale would be used by PLDT to reduce debt and finance existing and new data centre projects, one of the sources revealed.

Founded in 1928, PLDT is the Philippines' largest telecommunication conglomerate, offering services such as fixed-line and wireless telephony. It operates 11 data centers through its subsidiary ePLDT. The share price has increased by 5.6 percent year-to-date, giving the company a market value of $5.09 billion as of Tuesday, according to LSEG data.

This potential deal reflects the growing interest in Southeast Asian data centers, driven by the region's expanding digital population and the increasing adoption of artificial intelligence. In a similar move, in September, global investment firm KKR & Co acquired a 20 percent stake in Singapore Telecommunications' regional data center business for S$1.1 billion ($813.49 million).