Globe plans P56B for AI-driven infrastructure expansion

By Ashley Erika O. Jose, Reporter

GLOBE TELECOM, Inc. said it is allocating P56 billion this year for network upgrades, infrastructure expansion, and data center investments as the listed telecommunications company expands the use of artificial intelligence (AI) across its operations and enterprise services.

“This year alone, we are looking at P56 billion being invested into infrastructure, network upgrades, together with co-investments with STT GDC (ST Telemedia Global Data Centres) for data centers,” Globe Business Marketing Head Jonathan Cristobal told BusinessWorld on the sidelines of the BusinessWorld Economic Forum on Monday.

He said Globe Business, the enterprise arm of Globe Telecom, is increasing investments in AI-related capabilities and expects spending in the segment to continue over the medium term.

“Yes, I would have to say yes, at least in the context that we just had Candle, that is 2028 types of maturity. Investments are being made not in one go,” he said.

Candle Cable is an 8,000-kilometer submarine cable system linking Japan, Taiwan, Indonesia, Malaysia, Singapore, and the Philippines. The system is designed with 24 fiber pairs and a total capacity of 570 terabits per second.

The consortium behind the project includes Meta Platforms, Inc., SoftBank Corp., IPS, Inc., NEC Corp., Telekom Malaysia Bhd., and PT XLSmart Telecom Sejahtera Tbk.

Globe is participating in the consortium as both an investor and landing party, with the cable planned to land at its Nasugbu cable station in Batangas, complementing another Philippine landing point in Baler.

The cable system is expected to support growing demand for cloud services, AI workloads, and enterprise digitalization across the Asia-Pacific region.

Mr. Cristobal said Globe is deploying AI across network operations and facilities management, including applications aimed at optimizing energy consumption and improving efficiencies at cell sites.

He added that Globe Business is also expanding partnerships to provide AI-related solutions and accelerate enterprise adoption in the Philippines.

Separately, ST Telemedia Global Data Centres Philippines said it is evaluating additional sites for expansion amid rising demand for data center capacity, including AI-driven workloads.

STT GDC Philippines is a joint venture among Globe Telecom, Inc., Ayala Corp., and ST Telemedia Global Data Centres. The company operates seven data centers in the Philippines with a combined information technology load of nearly 150 megawatts.

As of end-March, Globe’s capital expenditure rose 51% to P12.74 billion as the company accelerated investments in network expansion and capacity upgrades.

The company previously said it is maintaining its full-year capital expenditure guidance at below $1 billion.

Globe posted first-quarter attributable net income of P5.55 billion, down from P6.98 billion a year earlier, as the absence of one-off gains booked in 2025 and higher financing costs offset growth in revenues and core earnings driven by stronger data demand.

Shares in Globe fell P2 or 0.11% to close at P1,803 apiece on Monday.