Philippines: APAC’s next Hyperscaler Hub as data firms expand footprint

hyperscalers data centre
Image by shock | Bigstockphoto

The Philippines is set to become a new epicentre for cloud services as three of the world’s largest hyperscalers, and cloud providers embark on an expansion in the archipelago. 

With the government offering incentives, the country has become highly attractive for these companies, including Microsoft Azure, Amazon Web Services, Google Cloud, and Alibaba Cloud. One unnamed company has disclosed a potential investment worth $800 million.

Board of Investments (BOI) Managing Head Ceferino Rodolfo said that hyperscalers could co-locate with local data centre providers like PLDT, Globe, Converge ICT Solutions, and DITO Telecommunity Corp. PLDT, in particular, has recently expressed strong support for government authorities in the country’s bid to become APAC’s next Hyperscaler Hub. 

With the Philippines’ strong government and private sector partnership, Secretary Ramon Lopez of the Philippine Department of Trade and Industry (DTI) has expressed confidence in developing the country’s digital economy.

“After being widely recognized as the outsourcing capital of the world, this is the natural next step for the Philippines, as our country now has all the necessary elements in place to make this happen. We have a thriving digital economy and a good economic profile. The digital readiness of our enterprises is helping propel our economic growth even further,” said Lopez.

Around the world, data centre operators are increasing their investments in IoT infrastructure to support growing data volumes generated from an increasingly connected world. Additionally, Big Data is becoming a major focus of these companies’ service offerings as they recognize its potential for disruption across various industries such as healthcare and finance.

In their report on Increased Investment by Cloud and Colocation Providers Drives the Global Data Centre Market, Frost & Sullivan reports that the Asia-Pacific region will become the largest market by 2025, followed by North America and EMEA. 

Frost & Sullivan also predicts that increased demand for data storage will result in a 9.9% annual increase of investments made to the global data centre market, reaching $432 billion by 2025.

“The move from enterprise to cloud and colocation data centres will gain momentum because companies can reduce capital and operational costs by avoiding investments in hardware or software infrastructure and reducing maintenance and space requirements,” said Manoj Shankar, Research Analyst, Energy & Environment Practice, Frost & Sullivan.

Related article: Philippines’ PLDT injects US$80m into Apricot undersea cable system

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