Converge ICT Solutions Inc is to build a data center in the city of Mandaue in the Philippines.

The telco said it will invest PHP 1 billion ($20.8 million) in a new facility in the east of Cebu, which will initially have 300 racks in a six-story building that will also house a customer contact center. Construction is due to begin later this year.

“We have already bought a property in Mandaue and we hope to build it [into a data center] this year,” said Converge CEO and co-founder Dennis Anthony Uy. “This data center is quite important especially for the Visayas as the demand for digital services and data requirements are going up,”

The company built another data center in Manila in 2016. The investment in a second facility comes as the company expands to make the city of Cebu its hub as it rolls out new fiber connections to Visayas and Mindanao.

“We’ve already hit the ground running when we had our soft launch in Cebu last November. Considering that we’ve only been operating in Mandaue and Cebu cities on a limited basis, we’ve already signed on thousands of subscribers and established partnerships with small and medium enterprises (SMEs) and Enterprise clients,” said Uy.

“With Converge’s fiber optic cables having already landed in Cebu in April 2021, and with three landing points in the island--in San Remigio, Bogo and Naga--our domestic fiber backbone is firmed up and ready to take on the pent-up demand for fiber connection in central Philippines,” added Converge chief operating officer Jesus Romero.