Abu Dhabi-based technology firm Group 42 Holding Ltd. (G42) is considering investing between USD 300 million and USD 500 million over the next three to five years to develop a data center facility in the Philippines, according to the Department of Information and Communications Technology (DICT).
DICT Secretary Henry Rhoel R. Aguda said the investment proposal emerged during the Philippine delegation’s recent visit to Abu Dhabi. While G42 has expressed strong interest, site selection remains under evaluation, with key considerations including land availability, reliable power supply, and adequate water access — critical requirements for hyperscale data center operations.
Government officials say the Philippines is increasingly positioned as a potential data center hub in Southeast Asia, supported by multiple international subsea cable connections linking the country to global routes. The near completion of the national fiber backbone, which runs north to south, and the Luzon Bypass Infrastructure, which strengthens east-west connectivity, have further enhanced the country’s digital infrastructure.
According to DICT, connectivity is no longer a major constraint, shifting investor focus to power reliability and resource availability. The administration views data center investments as part of a broader strategy to attract capital into high-value, technology-driven industries and to support the country’s ambitions to scale artificial intelligence (AI) services and digital platforms.
During President Ferdinand R. Marcos Jr.’s recent visit to the United Arab Emirates, officials also met with DAMAC Digital, which is exploring plans for a large-scale data center in Laguna. DAMAC has committed more than USD 3 billion to Southeast Asia and aims to develop 250 megawatts of operational capacity in the region by 2026.
The growing interest from global operators reflects rising demand for digital infrastructure driven by e-commerce, digital payments, cloud services, and AI workloads in the region.
(Source: BusinessWorld)
