A Singapore-based company is planning to put up a $700-million hyperscale data center in the Philippines, which would make it the largest of its kind in the country, the Board of Investments (BOI) said.
The BOI said in a statement on Wednesday that its officials had a courtesy call last month with SpaceDC, a data center provider, which plans to put up its project in Rizal province and start operations before year-end. The 72-megawatt hyperscale data center, which will run on renewable energy, is also expected to be expanded in 2023.
BOI said hyperscalers are global technology companies providing cloud and internet-based services, which require large amounts of space, power and connectivity because of their massive customer base and surges in user demand.
“This project by the SpaceDC to establish the Philippines’ biggest hyperscale data center is truly remarkable, as it’s a leap forward toward our goal for our country to be the next hyperscaler hub in the Asia-Pacific region,” said BOI managing head and Trade Undersecretary Ceferino Rodolfo.
As this industry represents a significant potential for sustaining the country’s road to economic recovery, BOI chair and Trade Secretary Ramon Lopez has been pushing for the Philippines to be the next hyperscaler hub in the Asia-Pacific.
Lopez pointed out that amended laws and reformed policies in the Philippines can encourage hyperscaler companies to grow their business, citing amendments to the Foreign Investments Act, the Retail Trade Liberalization Act, the Public Service Act and the CREATE Law, which provides for lower-income taxes for businesses and a rationalized menu of incentives.