Philippines: Will the Philippines absorb demand from Singapore?

In light of Singapore announcing that going forward, it will be more selective about the data center projects it accepts, experts forecast that the Philippines will likely absorb some of the data center demand from Singapore. 

In a recent briefing paper, Santos-Knight Frank (SKF) Occupier Solutions and Services Manager for Data Centers lead Monica Gonzalez said that she expects the Philippines will double its capacity in the medium term. 

Speaking about the impact that Singapore’s moratorium has had, Gonzalez said: “This has pushed the interest to other countries in Southeast Asia that can absorb that demand such as Malaysia, Thailand, and now the Philippines.” She added: “Santos Knight Frank sees enormous potential in the country as a competitive, desirable data center location for international and regional investments.”

Of course, a number of significant investments have recently been made in the Philippines, with BeeInfotech announcing its BeeHive facility in the country, the largest of its kind in the Philippines. Likewise, a recent report from Research and Markets revealed the country’s data center market will experience a compound annual growth rate (CAGR) of 11.40% between 2021-2026. Moreover, investments are expected to reach up to US$ 535 million by 2026.

It appears that if the government manages to work out the kinks regarding renewable energy and power supply, the Philippines could be a hotspot for future developments.