DFNN and Silicon Valley Tech Company Nautilus Data Technologies Partner to Develop the Country’s First Green Data Center in Bataan

DFNN, Inc. (PSE: DFNN) and Nautilus Data Technologies (Nautilus) have inked a Memorandum of Understanding (MOU) to collaborate and jointly assist each other in projects involving the development of a data center in the Freeport Area of Bataan focusing on the use, supply, implementation and application of their respective businesses and related products & services. This much awaited collaboration between DFNN and Nautilus could not have come at a more opportune time when digital transformation is at its peak having been triggered by the pandemic and its restrictions on consumer movement and preferences.

Nautilus created the world’s most innovative water-cooled data center design, setting a new standard for energy efficiency, environmental sustainability, and global scalability. Data centers cooled by Nautilus offer unprecedented advantages, including energy savings, water conservation, environmental sustainability, and rapid global scalability.

With Starlink operations expected to commence in the third quarter, it is expected that customer needs for high-availability and resiliency in their applications will skyrocket. Therefore, a data center fully equipped — from power, network and cooling for additional tolerance to datacenter failures is an imperative if we want to be truly competitive in the current global business environment.

Our ASEAN neighbors have been investing in this front with Indonesia leading. According to research from IDC, Microsoft’s data center investment in Indonesia is expected to generate up to USD6.3 billion in new revenues from the country’s ecosystem of local customers and partners. In addition, its cloud-consuming businesses are expected to contribute 60,000 jobs to the local economy over the course of four years. With President Ferdinand R. Marcos, Jr.’s thrust of digitalization, building the country’s first green data center is a critical component of a sustainable technology ecosystem that will ensure the speedy growth and evolution of the technology sector which will hold the backbone of the digital economy. And with the Philippines recently announcing its highest GDP growth rate in the ASEAN region at 8.3% and the pressing need for e-learning and e-government coupled with the growth of the space industry and the pervasive expansion of connectivity nationwide, the need for hyper-scaling data centers will grow exponentially.

DFNN COO Ricardo F. Banaag said in a statement that, “Connecting the entire technology ecosystem is of great importance in creating value to both business and stakeholders. In this case, providing for a sustainable data center will ensure resiliency in the face of rapid growth and demand.” With over forty years in the technology sector, Mr. Banaag has the depth of experience in developing the ICT Industry in the Philippines. Prior to joining DFNN, Mr. Banaag was president and country manager for Intel Microelectronics Philippines, Inc., a position he held for over 16 years. Previous to joining Intel, Mr. Banaag ran IBM Philippine’s PC company.

Nautilus Data Technologies is a global pioneer in data center technology, leading a fundamental shift in the data center industry. Nautilus’ patented design water cooling technology is at the core of its technology, delivering a waterborne data center that operates more efficiently and less expensively than traditional land-based facilities while achieving higher environmental standards. This technology was validated with the launch of Project Nautilus, the world’s first successful waterborne data center operation. Partnering with the U.S. Navy, Applied Materials, and Veolia, Project Nautilus demonstrated how its water-cooling technology reduces power usage, decreases air pollution, lowers greenhouse gas emissions, eliminates water consumption, and cut costs.

The company’s vision reflects its founder, Arnold Magcale, a Filipino-American U.S. Navy veteran and recognized technology industry expert. Mr. Magcale is founder and Chief Technology Officer of Nautilus. As a recognized leader and respected visionary in the technology industry, he specializes in data center infrastructure, high availability networks, cloud design, and Software as a Service (SaaS) technology.
While serving on the management team of Exodus Communications, he launched one of Silicon Valley’s first data centers. Mr. Magcale’s background includes executive positions at Motorola Mobility, where his team deployed the first global Android devices and where he worked as part of the original design team; LinkSource Technologies; and the Quantum Capital Fund, serving as chief technology officer. He is also an early adopter and implementer of cloud computing and a member of the team at Danger, Inc., later acquired by Microsoft and a member of the team at Danger, Inc., also acquired by Microsoft.

Mr. Magcale had a distinguished 10-year career in the United States Navy Special Forces. His military and maritime expertise provided the foundation for inventing the world’s first commercial waterborne data center. Mr. Magcale combined his maritime expertise and military security knowledge with decades of industrial data center experience to create the Nautilus design. The first commercial Nautilus data center is the Stockton 1 Data Center, which was commissioned in December 2020 and is currently supporting customer operations.

This Press Release contains soft information and/or statements about future events and expectations that constitute “forward-looking statements.” The statements made pertaining to the Company’s collaboration with Nautilus Data Technologies (Nautilus) do not guarantee future contracts, obligations and/or performance, and undue reliance should not be placed upon them. As disclosed, the Parties have yet to execute a separate commercial agreement that will be binding on both parties. The Company shall update the public for any development on the MOU and/or contemplated transactions.

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