Market Trends of Philippines Data Center Construction Industry
Increasing 5G Installation And 4G Adoption Increases The Major Data Center Demand
- The growth in the telecom segment considerably increased after the pandemic, with new remote work and online study options being adopted as the new normal. According to Viavi Solutions, the number of cities covered by the 5G network in the Philippines has reached 98 in 2022 from 95 in 2021.
- Streaming services, online gaming, and shopping contributed to the considerable increase in the demand for data centers from the telecom industry. The Department of Information and Communications Technology introduced a new policy called the Common Tower Policy, which is expected to improve the quality of mobile networks further.
- With the DICT and Bases and Conversion Development Authority (BCDA) under its National Broadband Plan, the government included free Wi-Fi, satellite overlay, and standard tower policy, which will be rolled out in phases in the Philippines.
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IT and Telecom is Expected to Hold Significant Share
- Given the increasing digital adoption post-pandemic, Alibaba Cloud Intelligence intends to invest more in the Philippines after opening a data center. Allen Guo, the country manager for the giant technology firm, said at a press conference in Makati that the company was considering expanding the capacity of its data center to accommodate the growing use of digital platforms. Around 88% of the companies use cloud-based solutions in the Philippines.
- In addition, according to Asia Cloud Computing Association (ACCA), the Philippines was ranked number 11 in the Asia Pacific region with a total Cloud Readiness Index (CRI) score of 55.3. For the cloud regulation segment, the Philippines reached a score of 23.2, which was the 10th highest score for that segment in the Asia Pacific region.
- The growing demand for analytics and software for business purposes by the public and private industries is expected to boost the growth of the segment.
- In addition, smartphones with high-end processors and better viewing experiences have offered users features such as streaming content, playing high graphic games, conducting financial transactions, social networking, browsing news, and online shopping.
- These applications are user-friendly and have made the user's life comfortable and convenient, which has led the Philippine people to spend more than four hours on average on their smartphones. All these factors are increasing dependency on data centers.
