SM Investments Delays Data Center Investment, Awaiting Hyperscalers’ Entry

SM Investments Corp. (SMIC) has temporarily put its data center investment plans on hold, awaiting the entry of major global hyperscalers like Google, Amazon, and Meta into the Philippines. The decision reflects concerns about the country’s vulnerability to natural disasters and the high cost of power, factors that hyperscalers prioritize when selecting investment locations.

Strategic Considerations for Investment Delay

SMIC President and CEO Frederic DyBuncio noted that international hyperscalers currently favor countries such as Malaysia and Vietnam due to their more stable natural environments and clearer sustainability plans. DyBuncio emphasized, “These major hyperscalers are looking for renewable energy conversion plans, which we have yet to concretely establish in the Philippines.”

Future Potential and Preliminary Efforts

Despite current delays, SMIC previously expressed strong interest in the data center sector due to rising demand driven by artificial intelligence (AI) and digital transformation. The company has been discussing plans with a local partner to construct “cold shells”—facilities designed specifically for server housing—in an industrial park in Batangas. Construction is anticipated to begin in the following year.

Continued Optimism and Economic Commitment

While deferring data center investments, SMIC remains optimistic about Philippine economic growth and continues to explore other investment opportunities. DyBuncio stated, “We still see significant untapped potential in areas like financial inclusion and modern trade. Our commitment to supporting the economy and creating opportunities for Filipinos remains steadfast.”

Sources and References

• Reports on regional data center investments

• SM Investments Corp. official statements

• Industry analysis on hyperscaler market trends