The Philippines is positioning itself as a regional digital infrastructure hub, with plans to significantly expand its data centre capacity over the next decade. Information and Communications Technology Secretary Henry Aguda announced a target of adding up to 18 gigawatts (GW) of capacity, with 1.5 GW expected to come online by the end of 2027 and at least 1 GW to be added annually thereafter.
According to the International Trade Administration (ITA), the Philippine data centre market is projected to reach USD 811 million by 2029, representing a 27% increase from the previous year. Growth is being driven by rising digital demand, supportive regulatory policies, and increasing foreign investment. Notable investors include UAE-based Group 42 Holding Ltd., which has committed up to USD 500 million, and DAMAC Digital, which is planning the country’s largest facility with a capacity of 250 MW.
The Philippines currently has close to 500 MW of installed capacity, supported by members of the Data Center Operators of the Philippines (DCPH), including VITRO, ST Telemedia, YCO Cloud, Digital Edge, Digital Halo, and A-FLOW. The government is also exploring the conversion of the Bataan Nuclear Power Plant into a hyperscale data centre, which could contribute an additional 600 MW of capacity.
These initiatives are expected to strengthen the Philippines’ position as a key digital hub in Southeast Asia, attract further investment, and support future data service exports to ASEAN, the Middle East, and the United States.
Source: Manila Bulletin
