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Cloud adoption driving demand and increased investments, adoption of AI

The Philippines Data Center Market is expected to grow at a CAGR of 13.4% during 2022-2027, according to Research And Markets.

Philippines has gained traction in data center development over the last few years, owing to factors such as internet adoption driven by COVID-19, increasing popularity of CDNs and gaming, a thriving BPO industry, and a strategic and connected location.

Manila is the most preferred location by data center operators, with 12 unique third-party data center facilities contributing to over 75% of the existing power capacity in the country. Other upcoming cities include Cebu, Clark, Mindanao, and Laguna, among others.

In April 2021, the Philippines launched the CREATE Act, with one element being a reduction in corporate income tax from 30% to 25% for companies with a net income of over $95,000, and 20% for MSMEs with a net income of under $95,000 and assets below $1.9 billion.

Data center operators are partnering with local operators to operate in the Philippines market. In March 2022, ST Telemedia Global Data Centres constituted a joint venture with Globe Telecom and Ayala Corporation for data center development in the country.

The National Renewable Energy Program (NREP) in the Philippines targets to achieve over 37% of renewable energy by 2030 and over 55% by 2040 in terms of the overall share of power generation.

Vendor landscape
Factors driving the Philippines data center market include the increasing gaming population, a booming Business Process Outsourcing (BPO) industry, and the increasing popularity of Content Delivery Network (CDN) and online streaming.

Market enables

  • Cloud Adoption driving Data Center Demand
  • Increased Investments in Data Center in Philippines
  • Increased Adoption of Artificial Intelligence in Philippines
  • Data Localization and Processing Law in Philippines

BCS Bureau

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