The Philippines has been encouraged to tap into its extensive undersea cable network to enhance its data center capacity. According to BMI, a unit of Fitch Solutions, this move is vital as regional competitors like Malaysia and Indonesia approach market saturation.
Strategic Investments Needed for Growth
The Philippines will need to actively compete for hyperscale deployments by leveraging its subsea connectivity.
BMI Report
- Proposed $500-million undersea fiber-optic network to improve national connectivity.
- Philippines has 43 megawatts (MW) of data center capacity under construction.
Data center growth in the Philippines largely hinges on government initiatives aimed at reducing permitting delays that currently hamper capacity expansion. The country's existing data center infrastructure is primarily concentrated in the capital, which may restrict growth if not addressed.
BMI's report highlights that the Philippines could capitalize on displaced demand from saturated markets. The focus is shifting towards higher-density data center campuses to align with the country's aspirations in artificial intelligence (AI).
Currently, the Philippines is on track to achieve 1.5 gigawatts of data center capacity by 2028, supported by a favorable regulatory environment and the potential influx of foreign operators, as indicated by the Data Center Association of the Philippines.
The Department of Information and Communications Technology (DICT) has ambitious plans, including the AI+ Infrastructure Masterplan, which targets $34.4 billion in investments by 2033. This includes projects from at least two major U.S. hyperscalers, expected to initiate 400 MW of capacity as soon as next year.