Philippines Data Center Construction Market

Philippines Data Center Construction Market Analysis

The Philippines Data Center Construction Market size is estimated at USD 2.18 billion in 2025, and is expected to reach USD 5.01 billion by 2031, at a CAGR of 14.85% during the forecast period (2025-2031).

Investments in data centers in the Philippines are being propelled by the rise of 5G, increased adoption of renewable energy, and enhanced digitalization, especially with the deployment of submarine cables and fiber connectivity.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Philippine data center construction market is expected to reach 1,014 MW by 2030.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 3.6 million sq. ft by 2030.
• Planned Racks: The country's total number of racks to be installed is expected to reach 181,000 units by 2030.
• Planned Submarine Cables: There are close to 11 submarine cable systems connecting the Philippines, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Link Cable (ALC), which stretches over 6,000 km with landing points from Bauang to the Philippines.

Philippines Data Center Construction Market Trends

Tier III Expected to Hold the Major Market Share

• In 2023, there were around 20 data centers in the Philippines with tier III certification, with a cumulative IT load capacity of 230 MW. Reliability and affordability are the major factors driving the demand for tier III data centers in the country. The tier III segment is projected to register a CAGR of 11.5% to reach around 519 MW by 2030.
• In 2023, NCR solidified its position as a premier hub for tier 3 certified data centers. Leading the charge was Space DC (MNL1), with a remarkable IT load capacity of 72 MW in a single facility. NTT Ltd trailed closely, boasting a combined capacity of 42 MW across two facilities. Beeinfotech claimed 15 MW, Digital Edge + Threadborne Group (NARRA1) secured 10 MW, and ST Telemedia Global Data Centres, spanning five facilities, collectively accommodated an IT load of 15.8 MW. Other market players, in contrast, held smaller portions of the market.
• Over the study period, NCR is slated to construct approximately six data center facilities, each meticulously designed to meet tier III standards. These strategic facilities are projected to collectively contribute more than 90 MW of IT load capacity to the country.
• Throughout the study period, key players are planning to invest in data centers, including Epldt, Globe+STT GDC+ Ayala Corporation (Karmanedge Inc.), and ePLDT Vitro Data Center. These developments in the Philippine market are poised to amplify the demand for tier III-certified data centers. This heightened demand, particularly within the tier III segment, is expected to fuel the necessity for data center construction services over the coming years.

IT and Telecom Segment Expected to Hold a Significant Market Share

• According to a survey titled "The Next-Generation Cloud Strategy in Asia," conducted by Alibaba Cloud, the digital technology arm of Alibaba Group, a significant 85% of Philippine businesses are gearing up for a full-scale cloud migration within the next two years. Furthermore, an overwhelming 91% of these businesses were set to boost their cloud investments in 2023.
• In addition, Allen Guo, the Country Manager for the Philippines at Alibaba Cloud Intelligence, emphasized at a roundtable event that Alibaba Cloud has been focusing on delivering highly scalable, secure infrastructure to Philippine enterprises. With an expected surge in cloud adoption, Alibaba Cloud is unwavering in its commitment to providing cutting-edge cloud solutions to the Philippine market.
• In May 2024, Converge ICT Solutions Inc., a prominent fiber broadband and technology provider, signed a strategic Memorandum of Understanding (MOU) with South Korea's NAVER Cloud Corp. Their collaboration aims to tap into the burgeoning cloud market in the Philippines. Converge ICT Solutions Inc. also aims to bolster digital transformation initiatives in the Philippines by leveraging NAVER Cloud's cutting-edge technologies. These technologies include smart city solutions and business tools like Large Language Model (LLM), Sovereign Cloud, WORKS (a B2B communication tool), and Whale (a browser-based web service integration platform).
• In terms of telecom growth in the country, in Q1 2024, Globe Telecom, a leading mobile operator in the Philippines, bolstered its network by erecting 116 new cell sites and enhancing 812 mobile sites to LTE. Additionally, the company strategically deployed 19,544 fiber-to-the-home (FTTH) lines, leveraging its existing fiber infrastructure to its fullest potential, especially in light of reduced capital expenditures.
• Philippine operator Globe Telecom reported that it had expanded its 5G footprint by installing 41 more 5G sites across Visayas and Mindanao in 2023. Of these, 27 sites were deployed in Visayas and 14 new ones in Mindanao in 2022. Globe noted that in 2023, it had attained 92.36% outdoor coverage in key Visayas and Mindanao cities and 97.90% in the National Capital Region, facilitating over 5.8 million devices connecting to Globe's 5G network in December alone.
• Such instances in the market are expected to create more need for data over the coming years. This surge in data storage demand is poised to elevate the need for data centers in the country, thereby bolstering the prospects of data center construction firms during the study period.

Philippines Data Center Construction Industry Overview

The Philippine data center construction market is consolidated, with significant players operating, such as Aecom Philippines Inc., Jacobs Project Philippines Inc., Turner & Townsend, Arup, and Aurecon Group Pty Ltd.

• In June 2024, plans were announced to be underway for a 300 MW data center campus in the Philippines. The project is set to unfold in three 100 MW phases. The Philippines News Agency, among others, reported that Endec Group, a construction and engineering firm based in Manila, in collaboration with Narra Technology Park Development Inc., had inked a lease agreement for a 47-hectare plot within the New Clark City (NCC).
• In November 2023, ST Telemedia Global Data Centres (STT GDC) awarded a contract to deliver the first phase of the STT Fairview 1 data center development in Quezon City, Philippines. The contract was given to Sydney-based CIMIC Group’s subsidiary, Leighton Asia, and the Philippine-based engineering and construction company First Balfour. The STT Fairview data center campus, upon completion, is set to span 83,000 sq. m across four buildings, with a projected IT load capacity of 124 MW.

Philippines Data Center Construction Market Leaders

Philippines Data Center Construction Market News

• July 2024: Vitro, a subsidiary of ePLDT and the data center arm of telco PLDT Inc., completed construction on its data center in Santa Rosa, located in the Laguna province of the Philippines. This 50 MW facility marked the country's pioneering hyperscale data center. Initially, Vitro plans to activate 10 MW, with the capacity set to scale up to 36 MW, spanning over 13,000 sq. m (139,931 sq. ft) of white space. The data center is slated to commence operations imminently.
• March 2024: Aboitiz InfraCapital Inc. (AIC) announced that it aims to commence construction on a data center in the near future, following up on a partnership established with US-based technology firm EdgeConneX (ECX) just under two years ago. The firms are currently in the process of determining the center's location and data capacity. The center is specifically tailored to support essential servers and IT networks.