NextGen Day

MANILA, Philippines — As the region’s data center powerhouse Singapore becomes more choosy on these types of projects in the future, the Philippines can absorb demand for data centers.

Monica Gonzalez, Santos-Knight Frank (SKF) Occupier Solutions and Services Manager for Data Centers lead, said the Philippines has adequate raw land to offer investors, since facilities with 10-megawatt (MW) capacity will require one to two hectares of land, according to a briefing on Wednesday.

With the Philippines being one of the world’s top social media users and the rise of its digital consumption, e-commerce, and cloud-based services, Gonzalez said the country is also an appealing market for data center operators.

“Data centers are seeking new data center hub locations in Southeast Asia or the APAC (Asia-Pacific) area,” she said.

This comes after Singapore announced an embargo on new data center construction in 2019, citing the sector’s “high demand for land and power.”

The country’s Ministry of Trade and Industry stated earlier this year that the moratorium would be lifted, but that future investment would be “more selective.”

As of last year, Singapore had 70 operational data centers with a total capacity of 1,000 MW.

“As a result, attention has shifted to other Southeast Asian countries that can accommodate that demand, such as Malaysia, Thailand, and now the Philippines,” Gonzalez added. “For all of these reasons, Santos Knight Frank believes that the country has significant potential as a competitive and appealing data center destination for international and regional enterprises.”

According to SKF data, the Philippines’ present data center capacity is 94 MW, with some operators with a combined capacity of 125 MW interested in setting up shop in the nation.

In the medium future, SKF expects the data center sector in the Philippines to treble its capacity, according to Gonzalez.

“However, power supply remains a difficulty for the country and could be a “speed bump” for the industry,” Gonzalez continued, “but (the) government’s backing for renewable energy will address this issue.”

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