The Anti-Red Tape Authority (ARTA) said data centers will play an important role in improving government services as well as developing the digital economy.
“We recognize that our digital economy is expanding and the demand for data centers in the Philippines is growing rapidly,” ARTA Director General Ernesto V. Perez said at a forum on Monday.
However, the permit process is proving to be a challenge in setting up such centres, he said.
“Data center development faces not only technical but also systemic challenges in the permitting process, slowing progress and increasing costs,” Mr. Perez said.
The Philippines' digital economy is projected to have a gross value of between $70 billion and $140 billion by 2030, according to a November report by Google, Temasek Holdings and Bain & Company.
Mr Perez cited the importance of data centres, communications towers and fiber optic cables as the government seeks to digitalise public services.
He said Executive Order (EO) No. 32 will help overcome delays in expanding internet and mobile services.
The EO seeks to “institutionalize a set of streamlined guidelines for the issuance of permits, licenses and certificates for the creation of telecommunications and Internet infrastructure to ensure the continued development of the country's digital infrastructure.”
Mr. Perez said the EO resulted in a 80.13% reduction in telecommunications tower activation time to 29 days.
According to Indian market research firm Modor Intelligence, the Philippine data center market was projected to grow from approximately $850 million in 2026 to $2.37 billion by 2031. — Beatriz Marie D. Cruz