THE PHILIPPINES is attracting renewed interest from global data center operators, with Abu Dhabi-based technology firm Group 42 Holding Ltd. (G42) planning to invest as much as $500 million (around P29.6 billion) in a new facility.
Department of Information and Communications Technology (DICT) Secretary Henry Rhoel R. Aguda said G42, which expressed interest toward the end of the Philippine delegation’s recent trip to Abu Dhabi, is considering an investment of $300 million to $500 million over three to five years.
“They still have a lot to do. They need to come to the Philippines and check the availability of land. With data centers, you also need power and water,” Mr. Aguda told a Palace briefing.
Combined with multiple international subsea cables linking the Philippines to global routes, the country is positioned as a potential data center hub in Southeast Asia.
Data center operators view the Philippines’ geography and connectivity as strategic, Mr. Aguda said, noting that strong digital infrastructure could allow the country to eventually export artificial intelligence (AI) services, treating AI computing like a utility delivered from local facilities.
“As for connectivity, they’re essentially already sold on that — it’s not a problem. The Philippines has many international subsea cables coming in from the north-south, northeast, and southwest routes,” he added.
Investors have also been encouraged by the near completion of the national fiber backbone, which runs from north to south, and the Luzon Bypass Infrastructure, which strengthens east-west connectivity.
Connectivity is no longer a constraint, Mr. Aguda said, with remaining considerations focused on securing suitable land with reliable power and adequate water access — key requirements for large-scale data centers.
President Ferdinand R. Marcos, Jr. was in the United Arab Emirates (UAE) earlier this week to witness the signing of a trade deal and a defense pact. During his trip, he and Mr. Aguda met with tech firm DAMAC Digital, which is exploring plans for what may become the country’s largest data center in Laguna.
The administration is offering priority support for the sector as part of its strategy to attract capital into high-value, tech-driven industries and position the Philippines as a regional hub for digital infrastructure amid rising demand from e-commerce, digital payments, and AI.
DAMAC Digital has committed over $3 billion to Southeast Asia and plans 250 megawatts of operational capacity in the region by 2026. — Chloe Mari A. Hufana
