The Philippines to Receive at Least USD 1 Billion for the Construction of Its Largest Data Center

June 2023

The Philippines’ largest conglomerate, Ayala Group and Singaporean data center service provider ST Telemedia Global Data Centers (STT GDC) have announced their plan to invest at least USD 1 billion to construct the largest data center in the Philippines. This strategic move comes as the country prepares for the entry of tech giants seeking a foothold in the local market. STT GDC Philippines will be responsible for building STT Fairview, a large 124-megawatt data center in Quezon City, with operations scheduled to begin in 2025. The facility will initially offer a capacity of 28 MW, which can be scaled up in response to future demand.

STT Fairview will span approximately 83,000 square meters and consist of four buildings strategically located near logistics, telecommunications, and transportation infrastructure. Its purpose is to attract both enterprises and hyperscalers, including industry giants like Amazon, Google, and Meta, seeking reliable co-location spaces for their data storage. The investment is expected to position the Philippines as an attractive destination for hyper-scalers, propelling the country’s growth as a hyper-scale hub.

Carlo Malana, President of STT GDC Philippines, revealed plans to secure diverse financing sources to fund the ambitious STT Fairview project, given the substantial USD 1 billion (PHP 55.6 billion) investment required. The Department of Information and Communications Technology (DICT) projects the hyper-scale market to become a significant revenue generator for the Philippine economy, with the country’s data center industry expected to grow at an average annual rate of 25 percent until 2027. This growth is not only expected to bolster the economy but also generate employment opportunities.

Recognizing the potential of the data center sector, DICT Secretary Ivan John Uy emphasized the importance of preparing the country’s youth for future job prospects in data center management. The DICT is proactively focusing on educating students to meet the growing demand for skilled professionals in this field. Uy highlighted the untapped potential of the country’s land and resources, as well as its human resources, and expressed confidence in the unlimited growth opportunities presented by the data center industry.

(Source: Philstar}

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.