Philippines Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OVERVIEW

The Philippines data center market will witness investments of USD 1.61 billion by 2029, growing at a CAGR of 13.58% during the forecast period. The Philippines is an emerging data center market in Southeast Asia driven by a cloud-first strategy, a favorable business environment, and a robust regulatory framework; the region is emerging as an attractive destination for potential investors.

Operators in the Philippines data center market are procuring renewable energy for their operations. For instance, SpaceDC’s upcoming data center, MNL1 in Manila, will use 100% renewable energy (geothermal & wind) for its operations and will be one of the first green data centers in the Philippines. Moreover, data center development in the country in the past year has witnessed significant growth due to digitalization and increased data traffic, with increasing numbers of internet-related service users.

Establishing free trade zones by the government will boost the growth of data centers in such locations in the coming years. Some of the free trade zones (FTZs) include the Freeport Area of Bataan (FAB), Clark Freeport and Special Economic Zone (CFEZ), Cagayan Special Economic Zone and Freeport (CSEZFP), and Cavite Export Processing Zone (CPEZ). Further, the Department of Energy (DOE) has set ambitious targets in its 2020-2040 Power Development Plan. The plan aims for 35% of the country's energy to come from renewable sources by 2030, expected to increase to 50% a decade later.

KEY HIGHLIGHTS

• The Philippines data center market is witnessing growth due to significant digitalization, strong fiber connectivity, growing adoption of technologies like AI, and other factors.
• Public and private organizations are investing in data centers in the country due to the growing need for cloud services, 5G, artificial intelligence, big data, and the Internet of Things (IoT).
• In terms of 5G connectivity, in the Philippines, telecom operators such as PLDT, Globe Telecom, and DITO Telecommunication have been offering commercial 5G services across the country.
• Connectivity is significantly growing in the Philippines data center market. The Philippines has around 18 existing submarine cables connecting the Middle East, Africa, and Europe. The country also has 11 upcoming submarine cables that are expected to go live in 2026.
• The growing investment opportunities in the Philippines data center market have attracted several new entrants to invest in the market, including ST Telemedia Global Data Centres, Edge Centres, Digital Halo, and others.
• Renewable energy is experiencing significant expansion in the Philippines. The government actively utilizes abundant renewable resources to achieve its environmental sustainability objectives. In line with this trend, data center operators in the nation are anticipated to adopt renewable energy sources to power their operations.
• There are around 22 data center facilities in the Philippines, and Manila is a top spot for building colocation data centers, with several major data center operators. Some major operators in the Philippines data center market include ePLDT, Globe Telecom, Digital Edge, DITO Telecommunity, and others.
• The country's Information and Communication Technology (ICT) sector holds significant promise. Numerous companies in industries like healthcare, banking, financial services, and telecommunications are shifting their work processes to cloud platforms.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available regarding investment, area, power capacity, and Philippines colocation market revenue.
• An assessment of the data center investment in the Philippines by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Philippines data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in the Philippines
  • Facilities Covered (Existing): 22
  • Facilities Identified (Upcoming): 15
  • Coverage: 7+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in the Philippines
  • Colocation Market Revenue & Forecast (2023-2029)
  • Wholesale vs. Retail Colocation Revenue (2023-2029)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Philippines data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• The Philippines data center market has the presence of several global IT infrastructure providers such as Atos, Broadcom, Fujitsu, Dell Technologies, Cisco Systems, IBM, and others, which has led to an increase in the availability of advanced IT infrastructure in the market.
• The Philippines data center market has the presence of local and global construction contractors who have catered to several data center projects over the years. For instance, In 2023, ePLDT signed a contract with MACE to develop their data center facility in the Philippines.
• The support infrastructure segment in the Philippines is dominated by global vendors such as ABB, Caterpillar, Cummins, Eaton, and others, leading to increased market competitiveness. It is expected to lead to a reduction in infrastructure prices in the coming years.
• Some of the key investors in the Philippines data center industry in 2023 are ePLDT, Space DC, Ditto Telecommunity, YCO Cloud, Mega Wide, Ayaland Logistics Holdings, Converge ICT Solutions, ST Telemedia Global Data Centres, Edge Centres, Digital Halo and others.
• Data Center operators in the Philippines are investing in the expansion of their presence in the market. For example, in August 2022, ePLDT outlined a plan to nearly double the rack power density of its data centers, aiming for a future capacity of up to 15,000 cabinets.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Manila
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Manila
  • Other Cities

REPORT COVERAGE:

This report analyses the Philippines data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT INFRASTRUCTURE PROVIDERS: Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp, and Oracle.
• Data Center Construction Contractors & Sub-Contractors: Arup, Aurecon, Comfac, Data Center Design Corporation (DCDC), First Balfour, Gensler, JSLA Architects, Leighton, Mace, PRONET, Red Engineering, Syska Hennessy Group and Thornton Tomasett.
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, Vertiv and ZTE.
• Data Center Investors: Beeinfotech, Bitstop Network Services, Digital Edge, DITO Telecommunity, ePLDT, and Globe Telecom. 
• New Entrants: Ayala Land & FLOW Digital Infrastructure, Converge ICT Solutions, Digital Halo, Edge Centres, EdgeConneX, Megawide Construction Corporation, SpaceDC, ST Telemedia Global Data Centres, and YCO Cloud.