Baker McKenzie Advises ARCH Capital on Digital Halo Data Center Deal in Philippines.

Baker McKenzie has advised ARCH Capital on the acquisition of a seed data center asset in Manila, Philippines, part of ARCH’s broader strategy to expand its footprint in Asia’s growing digital infrastructure sector.

The deal marks one of the first steps in scaling Digital Halo, a regional data center platform founded by ARCH Capital in 2022.

The acquisition is tied to ARCH’s new partnership with global private markets investment firm Partners Group.

Together, the two firms plan to invest approximately USD 400 million into Digital Halo, with the goal of developing over 500 megawatts of data center capacity across key Asian markets.

“There is synergy in this partnership for ARCH Capital as we are present and local in many Asian markets,” said Richard Yue, Founder and CEO of ARCH Capital.

“The establishment of this strategic partnership with Partners Group is a validation of our efforts on the regional data centre landscape and confirms our vision for the demand and growth of this asset type in Asia.”  

Digital Halo’s expansion will begin with two seed assets, one in Metro Manila and another in Johor Bahru, Malaysia.

The platform is positioned to meet the surging demand for reliable digital infrastructure as cloud adoption and data usage continue to accelerate across the region.

Jonathan Umali, Chief Investment Officer at ARCH Capital, added, “This transaction will be instrumental in accelerating the growth of the data center platform in the collaboration with Partners Group.

Our continued participation reflects our shared commitment to expanding critical data infrastructure across the Asia Pacific region, positioning us to meet the evolving needs of the digital economy.”

The Baker McKenzie deal team was led by Principal Theodore Heng in Singapore, supported by Senior Associates Alexa Jiang and Yong Wei Tan, along with Associate Precia Lian.

Philippine legal support was provided by Partner Charles Veloso and Associate Miguel Sanchez of Quisumbing Torres, Baker McKenzie’s member firm in the Philippines.

ARCH Capital will retain a minority stake in Digital Halo, enabling continued involvement in the platform’s strategic growth.

For ARCH, the deal reflects both a deepening commitment to digital infrastructure and the firm’s established strength in sourcing and developing strategic assets across the Asia Pacific region. 

ARCH Capital is a Hong Kong-based, independently owned real estate private equity firm focused on the Asia Pacific region. It specializes in opportunistic, value-add, and core strategies across residential, office, retail, and mixed-use assets. Originally a joint venture with the Ayala Group, ARCH became fully independent in 2017 and has since partnered with global institutions like the Olayan Group and Manulife. The firm combines deep local expertise with active asset management to unlock value across diverse markets. 

Baker McKenzie is a leading global law firm founded in 1949, with a presence in over 40 countries. With a team of 13,000 professionals, the firm advises corporations, governments, and institutions on complex legal matters across corporate law, litigation, tax, and more. Renowned for its cross-border capabilities and innovative approach, Baker McKenzie has handled over USD 600 billion in M&A transactions in the past five years, more than 65% of which span multiple jurisdictions. The firm is also recognized for its commitment to diversity, inclusion, and sustainable business practices.

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