Philippines Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

MARKET OUTLOOK

The Philippines data center market size will witness investments of USD 1.97 billion by 2030, growing at a CAGR of 20.89% during the forecast period. Investment opportunities in the Philippines will be driven by digitalization, government-led digital transformation, AI, and renewable energy. The Philippines data center market is set to grow with continued joint ventures between local and foreign companies to establish data centers. For instance, in September 2024, a joint venture between Ayala Land and PAG’s Flow Digital Infrastructure completed the main structure of its ML1 data center in Laguna, Philippines.

Due to the rising electricity costs and growing demand for electricity due to rising data center constructions, the operators in the market will be shifting to renewable energy sources which in turn will increase competitiveness in the sustainable energy pricing. Also, the Philippines government supports renewable energy and has set its goal to increase to 35% renewable energy capacity by 2025 and 50% by 2040. The Philippines government has taken several initiatives to increase foreign investment in the renewable energy sector. For instance, the Department of Energy (DOE) has introduced various financial incentives such as income tax holidays, duty-free imports, and a 0% VAT.

In Southeast Asia, following the growth of Malaysia, the Philippines will be a major data center hub in the next 2-3 years. Furthermore, in 2024, the Philippines data center market witnessed new entrants such as AyalaLand Logistics Holdings & FLOW Holdings, Digital Halo, Edge Centers, EdgeConnex, Equinix, and others. This will boost competition in the future, leading to higher revenue generation for contractors and infrastructure vendors. Furthermore, the enterprise sector dominated the utilized power capacity in the Philippines in 2024. The enterprise sector includes private companies, tech companies, content service providers, and the education sector. During the forecast period, we expect this sector to decline as most of the companies are slated to migrate some of their workloads to the cloud.

KEY HIGHLIGHTS

1. Data center operators in the Philippines are procuring renewable energy for their operations. For instance, Digital Halo’s data center MNL1 in Manila is designed to operate on 100% renewable energy (geothermal & wind) for its operations.
2. The Philippines government offers on-the-job training (OJT) opportunities for the country's youth. Additionally, it has launched the Special Program for Employment of Students (SPES), which provides temporary jobs for college students during their summer and winter breaks.
3. The Philippines is witnessing significant investment in AI-ready data centers. For instance, in December 2024, ePLDT is planning to construct a new AI-ready hyperscale data center in South Luzon with a power capacity of around 100 MW.
4. The Philippines is advancing quickly in digitalization, with strong support from the government on digital transformation and the business sector’s efforts to enhance operations, customer engagement, and productivity. A survey commissioned by Alibaba revealed that 85% of Philippines businesses intend to undergo a comprehensive cloud migration by the end of 2026.
5. With the development of AI-ready data centers in the market, the demand for liquid cooling solutions is also expected to grow. Digital Edge’s NARRA1 data center facility has invested in StatePoint Liquid Cooling Systems.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Philippines colocation market revenue.
2. An assessment of the data center investment in the Philippines by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Philippines data center market landscape, an in-depth industry analysis, and insightful predictions about the Philippines data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in the Philippines
6. Facilities Covered (Existing): 22
7. Facilities Identified (Upcoming): 11
8. Coverage: 7+ Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in the Philippines
12. Colocation Market Revenue & Forecast (2021-2030)
13. Retail & Wholesale Colocation Pricing
14. The Philippines data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
15. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
16. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
17. A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

1. The Philippines data center market has a presence of several global support infrastructure providers that will increase its competitiveness in the market. Some of the support infrastructure vendors present in the Philippines data center market include ABB, Caterpillar, Cummins, Eaton, Fuji Electric, Legrand, Mitsubishi Electric, Rolls-Royce, Vertiv, and others.
2. Some of the key colocation data center investors in the Philippines data center market include ST Telemedia Global Data Centres, ePLDT, Converge ICT, Digital Edge, DITO Telecommunity, and others.
3. The Philippines data center market has several local and global construction contractors operating in the market including Arup, Aurecon, Comfac, Data Center Design Corporation (DCDC), JSLA Architects, PRONET, Mace, Red Engineering, Design Coordinates, and others that have been offering their services in the market. For instance, Design Coordinates joined hands with JSLA Architects to offer their services in constructing the YCO Cloud data center, located in the Light Industry and Science Park IV in Malvar, Batangas.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Manila
3. Other Cities
4. List of Upcoming Facilities in the Region (Area and Power Capacity)
5. Manila
6. 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:

1. IT Infrastructure
2. Servers
3. Storage Systems
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC & CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers & Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & Commissioning Services
23. Engineering & Building Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp, and Oracle.
2. Data Center Construction Contractors & Sub-Contractors: Arup, Aurecon, Comfac, Data Center Design Corporation (DCDC), First Balfour, Gensler, JSLA Architects, Leighton Asia (CIMIC Group), PRONET, Mace, Red Engineering, Syska Hennessy Group, Thornton Tomasetti, and Design Coordinates.
3. Support Infrastructure Providers: ABB, Caterpillar, Cummins, Cyber Power Systems, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, Vertiv, and ZTE.
4. Data Center Investors: Beeinfotech, Converge ICT, Digital Edge, DITO Telecommunity, ePLDT, ST Telemedia Global Data Centres & Globe Telecom.
5. New Entrants: AyalaLand Logistics Holdings & FLOW Digital Infrastructure, Digital Halo, EdgeConneX, Equinix, Megawide Construction Corporation, and YCO Cloud.

TARGET AUDIENCE

1. Real Estate Investment Trusts (REIT)
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies