Philippines Emerges as One of the Rising Hyperscale Destinations in Asia, According to S&P Global Market Intelligence

August 04, 2023

The Philippines is rising as a hyperscale destination in Asia, according to a recent study by the DICT.

As the race for data dominance intensifies in the Asia Pacific Region, the Department of Information and Communications Technology (DICT) projects a remarkable five-fold increase in data center capacity within the Philippines for the next five years. Supporting the local data center race is PLDT and its ICT subsidiary, ePLDT, with a current 65% market share and further plans for expansion to position the Philippines as the regional hyperscaler hub in the Asia Pacific Region.

Philippines Emerges as One of the Rising Hyperscale Destinations in Asia, According to S&P Global Market Intelligence
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Philippines Emerges as One of the Rising Hyperscale Destinations in Asia, According to S&P Global Market Intelligence


    The 2023 Q1 market report by S&P Global Market Intelligence also showed a 13% compound annual growth rate (CAGR) in the country’s data center operational space between 2020-2025 amid the ongoing expansion of hyperscalers and significant interests of global enterprises in the country.

    Developments on these thrusts were among the topics tackled during S&P Global's webinar held on June 15 and 29, led by Dan Thompson, the Principal Research Analyst for Datacenter Services and Infrastructure at S&P Global. 

    He was joined by Gary Ignacio, Chief Data Center Officer at ePLDT, and Roselle dela Cruz, Vice President for US & Europe, Middle East and Africa Market at PLDT Global Corporation, who shared their views on the digital shifts that have taken place in the Philippines and PLDT’s efforts to establish the country as the next digital market destination in Southeast Asia.

    Building the PH Digital Infrastructure


    Recognizing the growing demand for digital transformation, PLDT has made substantial investments in international and domestic infrastructure. "It is PLDT and ePLDT’s top agenda to ensure we have the right digital infrastructure that the country needs," said Ignacio.

    The Group’s initiatives include the completion of the Jupiter Cable System, ongoing work on the Asia Direct Cable System, and future plans for the Apricot Cable System. With an extensive fiber rollout both in and out of the country, alongside 5G network expansion, PLDT is committed to connecting the digital ecosystem not only within the Philippines but also across the region. This initiative facilitates faster data transmission and supports the growth of digital economies in the area.

    For its part, ePLDT invested heavily in its data center and cloud since these are the foundation for enterprise growth and national digitalization efforts. Ignacio envisions the Philippines replicating its success as an outsourcing hub in the cloud and hyperscale domain: "We’re harnessing our experience and success in terms of being the outsourcing hub of the world. We can do the same for cloud solutions and data center services."

    Notably, sectors such as banking and finance, business process outsourcing, and the national government are witnessing significant growth and adoption of ePLDT's services, fueled by digital transformation initiatives.

    VITRO Sta. Rosa: The First Hyperscale Data Center in the Philippines


    As the country’s largest data center network provider, ePLDT's 10 VITRO Data Centers provide the essential infrastructure for the digital economy. But to further address the need for scalable and reliable digital infrastructure, it is constructing its 11th VITRO Data Center – the country's first true hyperscale data center in the industrial zone of Sta. Rosa, Laguna.

    With a five-hectare property and a total facility capacity of 50MW, the state-of-the-art facility meets Rated-3 certification and Rated-4 readiness standards, providing clients with unparalleled reliability and uptime assurance.

    Aligned with ePLDT’s commitment to contribute to a greener future, VITRO Sta. Rosa is also purposefully designed to adhere to sustainability aspects and LEED standards, operating with a 1.4 Power Usage Effectiveness (PUE) energy efficiency – the lowest realistic PUE for data centers in the Philippines.

    The Future for ePLDT


    Looking ahead, ePLDT is dedicated to expanding its data center infrastructure. With ongoing construction of VITRO Sta. Rosa (VSR) and plans for Data Center 12, ePLDT is ready to meet the increasing demands of hyperscalers and enterprises that will further fuel the country’s digital economy.

    Dela Cruz expresses the country's potential: "The Philippines is a rich country, not just in natural resources, culture, talent, but it is also in a unique strategic geographic position to be the next gateway to Asia from a digital infrastructure standpoint. With further collaboration with private and strong support from the government, we will definitely be the next digital hub in Asia."

    As the digital revolution gains momentum, the rise of the Philippines as a digital powerhouse is set to reshape the region's digital landscape.

    For more on ePLDT’s VITRO Data Centers, contact your Relationship Manager or visit www.ePLDT.com.

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