Local data center market enticing more investors
The Philippines’ data center market is expected to continue attracting investments amid increasing demand for data storage, BMI Research said on Friday.
A data center is a facility composed of networked computers, storage systems and computing infrastructure that organizations use to assemble, process, store and disseminate large amounts of data.
The most recent data center investment reported was a joint venture between Ayala Land Inc., and PAG’s Digital Infrastructure, which secured the first portion of a P10.8 billion or $185 million 10-year loan.
The funding will support the development of a 36-megawatt (MW) campus in Laguna, with the initial 6MW expected to be operational by the fourth quarter this year.
Meanwhile, ePLDT began constructing its Vitro Santa Rosa hyperscale campus, which will have a capacity of approximately 50MW. At the same time, STT started building its Fairview campus, designed to offer 124MW of capacity once fully completed.
Additionally, STT is constructing a new 6-MW facility in Cavite, known as Cavite 2.
Data centers like ePLDT Santa Rosa and STT Fairview will likely serve cloud service providers and other large international customers. These facilities will handle high-density data tasks that do not require extremely fast response times.
“Following the latter investments we estimate that the Philippines will have over 516 MW of upcoming data center capacity over the next four years,” BMI said.
BMI forecasted the country’s cloud market to hit $1.44 billion this year and about $6.1 billion in 2033.
