Filipino conglomerate SM Group has announced plans to exit the data center business.

The Philippine Star reported on August 8 that the company, formally known as SM Investment Corp., intends to sell its stake in YCO Cloud Centers, a joint venture of the Ynchausti-family-owned Filipino group JJYnchausti, and US-based Cloud Centers.

President and CEO Frederic DyBuncio said: “Right now, we are not really focused on data centers because from our perspective, the power cost is very expensive and the small minority we have in the data center business we’ll probably sell that eventually.”

The conglomerate had upped its stake in YCO to 18.1 percent in April of last year following reports that it was in talks with a local partner to build its first powered shells.

Filipino telco PLDT was also considering selling a minority stake in its data center subsidiary Vitro, but canceled its plans in May of this year after failing to find a prospective partner.

Founded in 1958, SM Group is a Philippines-based company operating in multiple sectors, including shopping mall development and management, retail, real estate development, banking, and tourism.