Philippines Data Center Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of data center industry in Philippines. The report covers an overview and genesis of the industry, market size in terms of revenue.

Its market segmentations include by vertical, by co-location, by types of end-users and by major cities; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to publisher estimates, the Philippines Data Center Market - which grew from approximately USD ~0.2 Bn in 2018 to approximately USD ~0.3 Bn in 2022 - is forecasted to grow further into USD ~0.6 Bn opportunity by 2027F, owing to the new government policies, rapid digitalization and cloud adoption.

Roll out of 5G and increasing young population using the internet, Digital and instant payments and the demand for domestic data storages will drive the BFSI and IT/ITes share.

The rising demand for decreased latency in data transfers and improved connectivity amid the increasing adoption of smart devices is likely to boost the demand for retail colocation data centers.

Key Trends by Market Segment:

• By Vertical: With the increasing demand for digital services under the COVID-19 pandemic and recent efforts to improve national connectivity and IT infrastructure, the government is trying to bring hyperscale’s to the Philippines which is driving the HSDC demand in 2022
• By Type of Co-Location: Philippines data center market is dominated by the Retail colocations due to increasing demand for data storage from the E-commerce companies because they need flexibility for their rapidly evolving IT requirements

Competitive Landscape

Philippines Data Center Market is at growing stage and has moderately concentrated market with ePLDT having strong base in terms of both white space area and total number of racks. Players are competing on the basis of number of data centers, data center capacity, uptime SLA, data security, client base, network and connectivity.

Future Outlook

The Philippines Data Center Market witnessed significant growth during the period 2018-2022, owing to growth of e-commerce, cloud technology and government initiatives.

Factors like rapid digitalization and cloud adoption are to drive the data center market in future. additionally, Philippines is expecting huge investments in the data center ecosystem due to increasing joint ventures among international and national players where market is expected to double its capacity in the upcoming years.