Hyperscalers and Data Centre Soon to Operate in the Philippines

The Philippines could be the next hub for hyperscalers and data centre in the Asia Pacific region with the largest soon to rise in Rizal.
The Philippines will soon become the new hub for hyperscalers and data centres.

With the advent of technology, more companies are now engaged in hyperscalers and data centre operations. The Philippines is expecting 11 companies to venture into the country with an estimated valuation of ₱147 billion.

Next Hyperscalers and Data Centre Operation Hub in Asia-Pacific

The Philippines will soon become a hub for hyperscalers and data centre operations. According to the Department of Trade and Industry (DTI), eleven companies seek to operate in the country.

Five of these companies are from the United States and work on data centre projects. It can accommodate 150 to 180 megawatts. This estimated project is worth more than $2 billion.

“We are assisting about 11 companies that are in the hyperscalers, data centre operations with a total estimated project cost of P147 billion,” said Ramon Lopez, Trade Secretary and Board of Investments chairman.

Lopez noted that the Philippines is still the leading country globally regarding social media and internet usage. He suggested that the country’s data centre market has huge potential. Its 94 megawatts capacity from current data centres can host the burgeoning demand in cloud services.

He added that local enterprise costs on cloud services will increase to around $2.6 billion in 2024. According to global data, it would be a $0.8 billion increase from 2020.

Additionally, the nation’s digital landscape makes it a perfect setting to advocate the development of hyperscalers. It includes telco infrastructures and services. Because of the industry’s potential, Trade Secretary Ramon Lopez lobbies for the country as the next hyperscaler hub in the Asia-Pacific. It will also help the country to revive its economy.

SpaceDC to Build Largest Hyperscaler Data Centre in the Philippines

SpaceDC is a Singapore-based data centre company that plans to construct the largest hyperscaler data centre in the country, particularly in Cainta, Rizal. Hyperscalers are global technology firms that provide cloud and internet-based services. Because of its vast customer base and flow in user demand, it requires huge amounts of space, power, and connectivity. SpaceDC CEO Darren Hawkins cited the Philippines as second when it comes to data centre growth in Southeast Asia.

“This project by the SpaceDC to establish the Philippines’ biggest hyperscale data centre is truly remarkable, as it’s a leap forward toward our goal for our country to be the next hyperscaler hub in the Asia-Pacific region,” said Ceferino Rodolfo, BOI managing head and Trade Undersecretary.

Lopez asserted that revised laws and reformed policies in the country could cultivate hyperscaler companies to proliferate their businesses. The Retail Trade Liberalization Act, Foreign Investments Act, the Public Service Act, and the CREATE Law offer businesses lower income taxes. It likewise provides an analysed system of incentives.

SpaceDC will work with global real estate services company JLL. They will establish an invulnerable, staunch, and network-rich data centre known as MNL1. The said green data centre will operate using renewable energy. It’s expected to activate this year, fully powered by wind and geothermal energy.

Meanwhile, PLDT Inc. will soon develop its 11th and ultimate hyperscale data centre facility in Sta. Rosa, Laguna. The telecom giant plans to build a 100MW data centre and will be named “Vitro Sta. Rosa.” They will design the facility based on LEED standards and will use wastewater, renewable energy, and collected rainwater.


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