Philippines Data Center Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.9 Billion |
| Market Size (2030) | USD 4.5 Billion |
| CAGR (2024 - 2030) | 14.85 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines Data Center Construction Market Analysis
The Philippines Data Center Construction Market size is estimated at USD 1.9 billion in 2024, and is expected to reach USD 4.5 billion by 2030, growing at a CAGR of 14.85% during the forecast period (2024-2030).
Investments in data centers in the Philippines are being propelled by the rise of 5G, increased adoption of renewable energy, and enhanced digitalization, especially with the deployment of submarine cables and fiber connectivity.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Philippine data center construction market is expected to reach 1,014 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 3.6 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach 181,000 units by 2030.
- Planned Submarine Cables: There are close to 11 submarine cable systems connecting the Philippines, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Link Cable (ALC), which stretches over 6,000 km with landing points from Bauang to the Philippines.
Philippines Data Center Construction Market Trends
Tier III Expected to Hold the Major Market Share
- In 2023, there were around 20 data centers in the Philippines with tier III certification, with a cumulative IT load capacity of 230 MW. Reliability and affordability are the major factors driving the demand for tier III data centers in the country. The tier III segment is projected to register a CAGR of 11.5% to reach around 519 MW by 2030.
- In 2023, NCR solidified its position as a premier hub for tier 3 certified data centers. Leading the charge was Space DC (MNL1), with a remarkable IT load capacity of 72 MW in a single facility. NTT Ltd trailed closely, boasting a combined capacity of 42 MW across two facilities. Beeinfotech claimed 15 MW, Digital Edge + Threadborne Group (NARRA1) secured 10 MW, and ST Telemedia Global Data Centres, spanning five facilities, collectively accommodated an IT load of 15.8 MW. Other market players, in contrast, held smaller portions of the market.
- Over the study period, NCR is slated to construct approximately six data center facilities, each meticulously designed to meet tier III standards. These strategic facilities are projected to collectively contribute more than 90 MW of IT load capacity to the country.
- Throughout the study period, key players are planning to invest in data centers, including Epldt, Globe+STT GDC+ Ayala Corporation (Karmanedge Inc.), and ePLDT Vitro Data Center. These developments in the Philippine market are poised to amplify the demand for tier III-certified data centers. This heightened demand, particularly within the tier III segment, is expected to fuel the necessity for data center construction services over the coming years.
IT and Telecom Segment Expected to Hold a Significant Market Share
- According to a survey titled "The Next-Generation Cloud Strategy in Asia," conducted by Alibaba Cloud, the digital technology arm of Alibaba Group, a significant 85% of Philippine businesses are gearing up for a full-scale cloud migration within the next two years. Furthermore, an overwhelming 91% of these businesses were set to boost their cloud investments in 2023.
- In addition, Allen Guo, the Country Manager for the Philippines at Alibaba Cloud Intelligence, emphasized at a roundtable event that Alibaba Cloud has been focusing on delivering highly scalable, secure infrastructure to Philippine enterprises. With an expected surge in cloud adoption, Alibaba Cloud is unwavering in its commitment to providing cutting-edge cloud solutions to the Philippine market.
- In May 2024, Converge ICT Solutions Inc., a prominent fiber broadband and technology provider, signed a strategic Memorandum of Understanding (MOU) with South Korea's NAVER Cloud Corp. Their collaboration aims to tap into the burgeoning cloud market in the Philippines. Converge ICT Solutions Inc. also aims to bolster digital transformation initiatives in the Philippines by leveraging NAVER Cloud's cutting-edge technologies. These technologies include smart city solutions and business tools like Large Language Model (LLM), Sovereign Cloud, WORKS (a B2B communication tool), and Whale (a browser-based web service integration platform).
- In terms of telecom growth in the country, in Q1 2024, Globe Telecom, a leading mobile operator in the Philippines, bolstered its network by erecting 116 new cell sites and enhancing 812 mobile sites to LTE. Additionally, the company strategically deployed 19,544 fiber-to-the-home (FTTH) lines, leveraging its existing fiber infrastructure to its fullest potential, especially in light of reduced capital expenditures.
- Philippine operator Globe Telecom reported that it had expanded its 5G footprint by installing 41 more 5G sites across Visayas and Mindanao in 2023. Of these, 27 sites were deployed in Visayas and 14 new ones in Mindanao in 2022. Globe noted that in 2023, it had attained 92.36% outdoor coverage in key Visayas and Mindanao cities and 97.90% in the National Capital Region, facilitating over 5.8 million devices connecting to Globe's 5G network in December alone.
- Such instances in the market are expected to create more need for data over the coming years. This surge in data storage demand is poised to elevate the need for data centers in the country, thereby bolstering the prospects of data center construction firms during the study period.
Philippines Data Center Construction Industry Overview
The Philippine data center construction market is consolidated, with significant players operating, such as Aecom Philippines Inc., Jacobs Project Philippines Inc., Turner & Townsend, Arup, and Aurecon Group Pty Ltd.
- In June 2024, plans were announced to be underway for a 300 MW data center campus in the Philippines. The project is set to unfold in three 100 MW phases. The Philippines News Agency, among others, reported that Endec Group, a construction and engineering firm based in Manila, in collaboration with Narra Technology Park Development Inc., had inked a lease agreement for a 47-hectare plot within the New Clark City (NCC).
- In November 2023, ST Telemedia Global Data Centres (STT GDC) awarded a contract to deliver the first phase of the STT Fairview 1 data center development in Quezon City, Philippines. The contract was given to Sydney-based CIMIC Group’s subsidiary, Leighton Asia, and the Philippine-based engineering and construction company First Balfour. The STT Fairview data center campus, upon completion, is set to span 83,000 sq. m across four buildings, with a projected IT load capacity of 124 MW.
Philippines Data Center Construction Market Leaders
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Aecom Philippines, Inc.
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Jacobs Project Philippines Inc.
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Turner & Townsend
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Arup
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Aurecon Group Pty. Ltd.
*Disclaimer: Major Players sorted in no particular order
Philippines Data Center Construction Market News
- July 2024: Vitro, a subsidiary of ePLDT and the data center arm of telco PLDT Inc., completed construction on its data center in Santa Rosa, located in the Laguna province of the Philippines. This 50 MW facility marked the country's pioneering hyperscale data center. Initially, Vitro plans to activate 10 MW, with the capacity set to scale up to 36 MW, spanning over 13,000 sq. m (139,931 sq. ft) of white space. The data center is slated to commence operations imminently.
- March 2024: Aboitiz InfraCapital Inc. (AIC) announced that it aims to commence construction on a data center in the near future, following up on a partnership established with US-based technology firm EdgeConneX (ECX) just under two years ago. The firms are currently in the process of determining the center's location and data capacity. The center is specifically tailored to support essential servers and IT networks.
Philippines Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 The Philippine Market is Witnessing a Surge in Data Center Demand, Propelled by Rising Investments in Cloud Technologies, Bolstered by the Widespread Embrace of AI
4.2.1.2 The Philippine Government's Digital Initiatives have Fueled a Surge in the Demand for Data Centers
4.2.2 Market Restraints
4.2.2.1 High Power Consumption and Emission Contributions of Data Centers
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Key Philippine Data Center Construction Statistics
4.4.1 Number of Data Centers in the Philippines, 2022 and 2023
4.4.2 Data Centers Under Construction in the Philippines, in MW, 2024-2029
4.4.3 Average CAPEX and OPEX for the Philippine Data Center Construction Market
4.4.4 Data Center Power Capacity Absorption in MW, Selected Cities, Philippines, 2022 and 2023
4.4.5 Top CAPEX Spenders on Data Center Infrastructure in the Philippines
5. MARKET SEGMENTATION
5.1 Market Segmentation - by Infrastructure
5.1.1 Market Segmentation - by Electrical Infrastructure
5.1.1.1 Power Distribution Solution
5.1.1.1.1 PDU - Basic and Smart - Metered and Switched Solutions
5.1.1.1.2 Transfer Switches
5.1.1.1.2.1 Static
5.1.1.1.2.2 Automatic (ATS)
5.1.1.1.3 Switchgear
5.1.1.1.3.1 Low-voltage
5.1.1.1.3.2 Medium-voltage
5.1.1.1.4 Power Panels and Components
5.1.1.1.5 Other Power Distribution Solutions
5.1.1.2 Power Back-up Solutions
5.1.1.2.1 UPS
5.1.1.2.2 Generators
5.1.1.3 Service - Design and Consulting, Integration, Support and Maintenance
5.1.2 Market Segmentation - By Mechanical Infrastructure
5.1.2.1 Cooling Systems
5.1.2.1.1 Immersion Cooling
5.1.2.1.2 Direct-to-Chip Cooling
5.1.2.1.3 Rear Door Heat Exchanger
5.1.2.1.4 In-row and In-rack Cooling
5.1.2.2 Racks
5.1.2.3 Other Mechanical Infrastructure
5.1.3 General Construction
5.2 Market Segmentation - By Tier Type
5.2.1 Tier I and II
5.2.2 Tier III
5.2.3 Tier IV
5.3 Market Segmentation - By End User
5.3.1 Banking, Financial Services, and Insurance
5.3.2 IT and Telecommunications
5.3.3 Government and Defense
5.3.4 Healthcare
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 AECOM Philippines Inc.
6.1.2 Jacobs Project Philippines Inc.
6.1.3 Turner & Townsend
6.1.4 Arup
6.1.5 Aurecon Group Pty. Ltd
6.1.6 Endec Group
6.1.7 Rider Levett Bucknall Philippines Inc.
6.1.8 First Balfour Inc.
6.1.9 MDBI Construction Corporation (MDBI)
6.1.10 Santos Knight Frank (SKF)
- *List Not Exhaustive
7. INVESTMENTS ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
Philippines Data Center Construction Industry Segmentation
Data center construction combines the physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The Philippine data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solutions (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions), power back-up solutions (UPS and generators), and service – design and consulting, integration, support and maintenance), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling), racks, and other mechanical infrastructure), and general construction), tier type (tier I and II, tier III, and tier IV), and end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users).
| Market Segmentation - by Infrastructure | ||||||||||||||||||||
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| General Construction |
| Market Segmentation - By Tier Type | |
| Tier I and II | |
| Tier III | |
| Tier IV |
| Market Segmentation - By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
Philippines Data Center Construction Market Research FAQs
How big is the Philippines Data Center Construction Market?
The Philippines Data Center Construction Market size is expected to reach USD 1.9 billion in 2024 and grow at a CAGR of 14.85% to reach USD 4.5 billion by 2030.
What is the current Philippines Data Center Construction Market size?
In 2024, the Philippines Data Center Construction Market size is expected to reach USD 1.9 billion.
Who are the key players in Philippines Data Center Construction Market?
Aecom Philippines, Inc., Jacobs Project Philippines Inc., Turner & Townsend, Arup and Aurecon Group Pty. Ltd. are the major companies operating in the Philippines Data Center Construction Market.
What years does this Philippines Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the Philippines Data Center Construction Market size was estimated at USD 1.62 billion. The report covers the Philippines Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Philippines Data Center Construction Industry Report
Statistics for the 2024 Philippines Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
