The Philippines is attracting renewed interest from global data center operators, with Abu Dhabi-based technology firm Group 42 Holding Ltd. (G42) planning to invest up to $500 million (about P29.6 billion) in a new facility.
Department of Information and Communications Technology (DICT) Secretary Henry Roel R. Aguda said the G42, which expressed interest at the end of the Philippine delegation's recent visit to Abu Dhabi, is looking at an investment of $300 million to $500 million over three to five years.
“They still have a lot to do. They need to come to the Philippines and check the availability of land. With data centres, you also need electricity and water,” Mr Aguda said at a palace briefing.
Combined with numerous international sub-sea cables connecting the Philippines to global routes, the country is positioned as a potential data center hub in Southeast Asia.
Data center operators look at the Philippines' geography and connectivity strategically, Mr. Aguda said, noting that strong digital infrastructure could eventually allow the country to export artificial intelligence (AI) services, treating AI computing like a utility distributed from local facilities.
“As far as connectivity goes, they are essentially already sold – that's not a problem. There are many international subsea cables coming into the Philippines from the North-South, North-East and South-West routes,” he said.
Investors are also encouraged by the near-completion of the National Fiber Backbone, which runs from north to south, and the Luzon Bypass infrastructure, which strengthens east-west connectivity.
Connectivity is no longer a constraint, Mr Aguda said, with remaining considerations focused on securing suitable land with access to reliable electricity and adequate water – key requirements for large-scale data centres.
President Ferdinand R. Marcos, Jr. was in the United Arab Emirates (UAE) earlier this week to witness the signing of a trade deal and a defense agreement. During his visit, he and Mr. Aguda met with tech firm DAMAC Digital, which is exploring plans to build the country's largest data center in Laguna.
The administration is offering priority support to the sector as part of its strategy to attract capital into high-value, tech-driven industries and position the Philippines as a regional hub for digital infrastructure amid growing demand for e-commerce, digital payments and AI.
DAMAC Digital has committed more than $3 billion to Southeast Asia and plans to have 250 MW of operating capacity in the region by 2026. – Chloe Marie A Hufana