AI boom opens new growth lane for Globe

Surging demand for artificial intelligence (AI) and cloud computing infrastructure is opening a new growth lane for Globe Telecom Inc., as the telco builds its data center footprint alongside fintech giant GCash to capture business beyond traditional connectivity.

Joel de la Pena, market strategist and chief trader at H.E. Bennett Securities Inc., said Monday that Globe’s longer-term growth prospects are increasingly tied to digital assets as demand shifts toward cloud services, AI infrastructure, and digital financial services.

“The true investment rationale for Globe lies in a profound structural shift. Its future engines of exponential growth are no longer tied to traditional voice and text, its rapidly scaling ecosystem of digital assets and corporate techno-solutions,” de la Pena said.

The shift could become increasingly significant for the broader telecommunications industry, where growth is moving beyond selling mobile and broadband connections toward providing the digital infrastructure needed by enterprises, hyperscalers and AI companies.

De la Pena cited estimates showing Philippine colocation demand could more than triple to 155 megawatts by 2030, equivalent to a 28-percent compound annual growth rate.

The country remains relatively underpenetrated, with data center capacity at only 0.8 megawatts (MW) per million people compared with 1.4 MW in Indonesia and 1.9 MW in Thailand, he said.

Globe is positioned in the market through ST Telemedia Global Data Centres Philippines, whose portfolio includes the 124-MW STT Fairview mega-campus in Metro Manila.

Demand is already emerging ahead of the facility’s full buildout. De la Pena said the first level of data halls at STT Fairview 1 has been fully sold, while hyperscalers and AI tenants are in active discussions for succeeding levels that are still undergoing commissioning.

STT GDC Philippines has also secured 40.5 MW of renewable energy through a 10-year partnership with MPower through 2035, helping address power costs and reliability—two major considerations for energy-intensive data centers.

Complementing the infrastructure play is Globe’s stake in Mynt Inc., the operator of GCash, which gives the telco exposure to the continued expansion of digital payments, lending, insurance and investment services.

De la Pena said the two businesses provide Globe with growth opportunities beyond its established telecommunications operations, which remain anchored by around 67.7 million mobile subscribers, 39.6 million mobile data users and 2.4 million home broadband customers as of end-June.

Globe’s share performance, however, continues to face pressure from broader market weakness and concerns surrounding the Konektadong Pinoy Law, according to de la Pena.

He argued that these pressures risk obscuring the company’s longer-term transformation as its digital businesses become a bigger part of its growth story.

“Globe Telecom is no longer just a telecommunications provider but an investment opportunity that presents a rare combination of defensive core income with exposure to growing digital assets – as it makes a powerful play into the ultimate engine room powering the digital transaction, cloud computing, and AI infrastructure of the Philippines,” de la Pena said.