The Philippines is looking to match Singapore’s capacity for hyperscale data centers, according to the Department of Information and Communications Technology.
According to DICT Secretary Henry Aguda, the government wants to increase the number of hyperscalers from less than 200 megawatts to 1 gigawatt.
Hyperscale data centers are cloud computing facilities designed for large-scale computing workloads and data storage with extremely fast connectivity for international traffic. They use a lot of electricity; one hyperscale operation can use over 50 MW.
When it comes to luring investments in IT infrastructure, including hyperscalers, the Philippines has lagged behind some of its neighbors in Southeast Asia. However, Aguda stated that the government is trying to address this by lowering data center power costs and resolving connectivity problems.
Hyperscale data centers—massive facilities designed to support high-volume cloud operations—have become critical to the growth of AI applications, e-commerce, digital banking, and online services.
Industry analysts predict that the rising adoption of generative AI, financial technology platforms, and digital services in Southeast Asia will fuel even more demand for reliable hyperscale capacity in the next five years.
Current investors in the Philippines’ data center ecosystem include locally based operators, telcos, and partnerships with foreign developers from Japan, the United States, and Singapore.
One of the key components in attracting hyperscale investors is ensuring access to renewable and stable energy sources, as large data centers require significant power capacity.
To address this, the government is working alongside the Department of Energy (DOE) to streamline energy policies and offer incentives for companies that invest in green-powered data center operations.
The DOE previously said the country’s vast potential for solar, wind, and hydropower aligns with what hyperscale operators are increasingly looking for—sustainable, low-carbon electricity sources.
Most new hyperscale projects are expected to rise in Luzon, particularly in Metro Manila and nearby provinces with ready access to fiber connectivity and power grids.
However, DICT officials confirmed that Visayas and Mindanao are also being evaluated for expansion, especially in areas with growing tourism, business industries, and available renewable energy resources.
Economic zones in Cavite, Batangas, Iloilo, and Davao have reportedly been shortlisted for potential hyperscale developments.
The DICT emphasized that enhancing digital infrastructure will help the Philippines keep pace with its regional neighbors, such as Singapore and Malaysia, which currently host some of Asia’s largest data center clusters.
