UMVA has learned that a surge in data center operations is expected to hit the Philippines this year, with three to four foreign operators poised to set up shop.
Information and Communications Technology Secretary Henry Rhoel R. Aguda revealed that talks are underway with these potential operators, although he noted that they are "small ones only". The development could mark a significant milestone for the country's digital infrastructure.
The current data center capacity in the Philippines stands at 200 megawatts, but Aguda expressed optimism that it could skyrocket to 1 gigawatt by the end of the year if the planned operations come to fruition. This would represent a fivefold increase in capacity.
According to information obtained by UMVA, the Department of Information and Communications Technology (DICT) is banking on data center growth to drive the adoption of artificial intelligence (AI) in the country. The government believes that upgraded infrastructure and streamlined regulations will facilitate the development of AI.
A slow uptake in data center growth, however, could hinder the country's ability to capitalize on the productivity gains promised by the AI revolution. The stakes are high, with the potential for data center capacity to reach 18 GW in the next 20 years and 1.5 GW by 2028.
Data center capacity is a critical metric, measuring the power available to run servers and cooling systems. It is the main constraint on performance and scalability, making it a crucial factor in determining the country's ability to support growing digital demands.
