NextGen Day

MANILA, Philippines — A world-class data center will soon develop in Malvar, Batangas, as the Philippines strives to become a hub for hyperscalers in the Asia Pacific area.

Santos Knight Frank (SKF) Occupier Solutions and Services Manager for Data Centers Lead Monica Gonzalez told the Philippine News Agency in an e-mail message on Thursday that YCO Cloud Centers (YCC) intends to invest US$500 million (PHP25.7 billion) in the nation over the next three years.

“Over the next three years, YCO Cloud Centers plans to invest US$500 million in numerous projects, starting with their flagship data center project, YCO Manila Digital 1,” Gonzales added.

JJYnchausti Ventures, Inc., which focuses on investing in digital infrastructure in the Philippines, and CloudCenters, LCC, based in California, formed YCC.

“The Philippines is a major, dynamic technology and digital hub in the APAC region, but it is underserved in terms of state-of-the-art data centers and digital infrastructure,” said YCC Chief Executive Officer Nik de Ynchausti in a statement issued earlier this week.

With a capacity of 12 megawatts, YCO Manila Digital 1 will be the first of YCC’s carrier-neutral, co-location, and enterprise-scale data centers.

“Demand for colocation, 5G, internet, and cloud services is constantly increasing. “Enterprises wishing to scale their mission-critical workload in the region will be interested in our data center,” the executive stated.

The first data hall is expected to be completed in the second quarter of next year, according to YCC.

With its accessible raw land, Gonzalez previously stated that the Philippines has a lot of potentials to be a data center hub in the area. To build a 10-MW data center, you’ll need between 1 to 2 hectares of land.

She went on to say that as Singapore, the region’s data center powerhouse, becomes “more choosy” in accepting new data center projects in the future, the Philippines will be able to absorb demand.

The Philippines is a desirable location for hyperscalers, according to the Department of Trade and Industry, because the country leads the globe in social media and internet usage, and e-commerce adoption surged 76 percent and 80 percent in 2020 and 2021, respectively.

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