A joint venture between Ayala Land, Inc. and PAG’s Flow Digital Infrastructure has secured a loan to fund the development of a data center outside Manila, the Philippines.

A-Flow Properties I Corp. (A-Flow), a joint venture between AyalaLand Logistics Holdings Corp. (ALLHC) and Flow Digital Infrastructure, and Land Bank of the Philippines (Landbank) announced the signing of a P2.4 billion ($41.1m) loan agreement representing Tranche 1 of a P10.8 billion ($185m) 10-year loan.

The loan facility is intended for the development of the initial phase of the first A-FLOW data center campus located in Biñan, Laguna.

Currently under construction, the 6MW capacity Phase 1A of the three-building data center campus project is targeted to be ready-for-service by the end of the year.

“This agreement marks a significant step forward in our shared commitment to develop the largest carrier-neutral data center campus in the Philippines. We are excited to build an ecosystem to attract a combination of international hyperscale customers and local enterprise customers," said A-Flow president, Amandine Wang.

Asia-focused investment manager PAG Real Estate launched Flow, a new investment platform focused on digital infrastructure in APAC, in late 2021. This is the platform’s first facility.

Flow and Ayala announced a partnership in May 2022 and signed an agreement the following October. They broke ground on the first phase in December 2022. Once fully built out, the three-building M1 campus facility will offer up to 36MW.

Landbank president and CEO Ma. Lynette V. Ortiz said: “Beyond our work with various government agencies, we recognize that partnering with key players like A-Flow is essential for advancing national development. In this era of rapid digitalization, we are likewise ready to drive investments into the local data center market, alongside other sectors contributing to our nation’s technological progress.

"This is the first data center project financed by Landbank, and with this new partnership, we are confident that this project will yield significant economic benefits.”

ALLHC is a subsidiary of Ayala Land, Inc, a real estate firm based in the Philippines, and itself a subsidiary of the Ayala Corporation conglomerate.

Ayala Land president and CEO and ALLHC chairman, Anna Ma. Margarita B. Dy, said: “Ayala Land is proud to be participating in this new opportunity leveraging our land and our lucrative abilities to contribute to the country’s move towards a digital economy. Like any other infrastructure project, capital is key. So, we thank Landbank for the P10.8 billion loan facility to A-Flow, a critical enabler for this project."

Ayala Corp. also previously took a stake in Globe Telecom’s then newly-carved out data center unit alongside STT GDC.