Market Size of philippines data center Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 497.18 MW |
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Market Volume (2029) | 954.22 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 13.93 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Philippines Data Center Market Analysis
The Philippines Data Center Market size is estimated at 497.18 MW in 2024, and is expected to reach 954.22 MW by 2029, growing at a CAGR of 13.93% during the forecast period (2024-2029).
USD 191.62 Million
Market Size in 2024
USD 447.5 Million
Market Size in 2029
18.9%
CAGR (2017-2023)
18.5%
CAGR (2024-2029)
IT Load Capacity
497.2 MW
Value, IT Load Capacity, 2024
The demand for digital services rose amid the COVID-19 pandemic and recent government efforts to improve the country's connectivity and IT infrastructure creates more need of data center spaces in the region.
Total Raised Floor Space
Sq. Ft. 2.28 M
Volume, Raised Floor Space, 2024
The country's total raised floor area is expected to increase to 5.3 million sq. ft by 2029. The growing number of people making digital purchases and people active on social media drives the demand for more data storage floor space.
Installed Racks
114,058
Volume, Installed Racks, 2024
The total number of installed racks is expected to reach 266,405 units by 2029. NCR is highly preferred by companies for setting up data centers due to the increasing amount of data generated by industries and the urban population.
# of DC Operators & DC Facilities
13 and 56
Volume, DC Facilities, 2024
The growing demand for cloud 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 around 50% of the country's data centers.
Leading Market Player
24.0%
Market Share, NTT Ltd., 2023
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.
Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing through out the forecasted period
- 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.
Understand The Key Trends Shaping This Market
