PLDT to launch Philippines' first data center REIT seeking $400M

This move marks the Philippines' first specialized data center REIT, providing a template for local telcos to monetize infrastructure while retaining operational control. By shifting capital-intensive assets off the main balance sheet, PLDT aligns with regional trends seen in Singapore and Australia, where providers like NTT and Keppel use REITs as capital recycling vehicles. For the broader ecosystem, this liquidity supports further expansion into high-density facilities required for regional AI and cloud workloads. Watch for the final valuation of the eight core assets, which management currently estimates between $600 million and $800 million.

The announcement follows the Philippine Securities and Exchange Commission (SEC) issuing Memorandum Circular No. 1 in January 2026, which formally expanded the Real Estate Investment Trust Act to include information and communications technology infrastructure and data centers. Per Mondaq (March 2026), these revisions also doubled the mandatory reinvestment period for sponsors to two years, providing companies like PLDT more flexibility to allocate proceeds into new digital infrastructure projects or debt repayment. This regulatory shift is intended to modernize the local capital market and attract investment to the country's growing digital sector.

Market demand in the Philippines remains high, with the data center industry projected to reach a valuation of $850 million by the end of 2026, according to W.Media (March 2026). This growth is largely supported by 'Cloud First' government mandates and the entry of global hyperscalers like Alibaba Cloud and Google, who are increasing local workloads. Per Research and Markets (January 2026), the Philippines offers a competitive construction cost advantage, averaging $6.5 million to $7.5 million per megawatt, making it a lower-cost alternative to established hubs like Singapore or Indonesia.

Despite the strategic shift toward REITs, regional performance for similar vehicles has been varied. While Keppel DC REIT reported record distributions in February 2026 driven by its Singapore and Tokyo acquisitions, newer listings such as the NTT DC REIT have traded predominantly flat. Analysts at Morningstar noted in early 2026 that high interest rates continue to influence REIT valuations by narrowing yield spreads against fixed-income assets, even as underlying demand for AI-ready floor space reaches 95% occupancy levels across major Asian hubs.