Philippines Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Philippines Data Center Market is projected to register a CAGR of 14.49%

Key Highlights

• IT Load Capacity: The IT load capacity of the Philippine data center market may grow steadily and reach 954.2 MW by 2029.
• Raised Floor Space: The country's total raised floor area is expected to increase to 5.3 million sq. ft by 2029.
• Installed Racks: The total number of installed racks is expected to reach 266,405 units by 2029. NCR is expected to house the maximum number of racks by 2029.
• DC Facilities: The growing demand for cloud and colocation services in the Philippines has boosted investments by Microsoft, AWS, and other hyper-scale service providers. Manila is the country's premier data center hub, hosting approximately 50% of the country's data centers.
• Leading Market Player: NTT Ltd has five operational data centers across cities, including Makati, Paranaque, Pasig, Clark, and Cebu. The data centers operate with 180,537 sq. ft of raised floor space in the Philippines.

Philippines Data Center Market Trends

Tier 3 is the largest Tier Type

• Growth in the tier 1 segment is expected to be stagnant due to the unreliability and longer downtimes of facilities. The IT load capacity of the tier 2 segment is expected to increase from 125.6 MW in 2021 to 172.6 MW by 2029 at a CAGR of 4.33%. These data centers are preferred mainly by small businesses due to the performance they offer at an affordable cost. However, a downtime of 22 hours annually, at times, makes companies reluctant and hesitant to opt for them.
• The IT load capacity of the tier 3 segment of the data center market in the Philippines is anticipated to increase from 78.3 MW in 2021 to 489.3 MW by 2029 at a CAGR of 25.75%. These data centers offer an uptime of 99.98% with N+1 redundancies, and they only have around 1.6 hours of downtime in a year. These advantages have made them highly preferable by large businesses.
• Currently, tier 3 data centers are highly prevalent in the region, as some facilities have upgraded their structures and services to the required standards. Operators prefer newly constructed facilities to be tier 3 and tier 4 ready.
• The IT load capacity of the tier 4 segment of the data center market in the Philippines is expected to reach 70 MW by 2029. These data centers are expected to be operational in 2023 and are preferred due to their high reliability and lower downtime of around 26.3 minutes. Currently, the Philippines has no colocation facility with Tier 4 certification. However, ePLDT announced that its 11th data center in Santa Rosa would be tier 4 and would be launched by 2023.
• Operators of new data centers prefer Tier 4 grade certifications for their infrastructure facilities due to the high reliability offered.

Philippines Data Center Industry Overview

The Philippines Data Center Market is fairly consolidated, with the top five companies occupying 67.15%. The major players in this market are Epldt Inc, GTI Corporation, NTT Ltd., STT GDC Pte Ltd and Zenlayer Inc (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support