Data hub operator Digital Edge wants to double capacity in PH

Digital Edge (Singapore) Holdings is looking at doubling its existing data center capacity of 10 megawatts (MW) in the next three years in response to the growing need for hubs housing critical servers, especially in the advent of artificial intelligence (AI).

Vic Barrios, country manager for Digital Edge, said in a press briefing on Thursday in Pasay they intend on scaling up their capacity in phases amid strong interest from clients here and abroad.

The company’s first data center in the country, NARRA1, can still be retrofitted to accommodate more servers, he said. It was launched in March last year with 2,200 cabinets, 12 data halls and a colocation space of 5,200 square meters.

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Barrios said they were also searching for another location in Metro Manila. “That is where the traffic is. It only makes sense to bring it in this area,” he said.

Its clients include hyperscalers, or entities that provide cloud, networking and internet services. Digital Edge also caters to enterprises in several industries like banks, manufacturing, business process outsourcing and health care.

“With the advent of AI, we frankly need more space and power,” he added.

The use of AI has been on the rise since ChatGPT became popular. It has several uses, which can enhance a company’s operations, including processing of real-time data that can aid in making quick and informed decisions.

Asked about the competition in the local market, Barrios said it was big enough for multiple players given the increasing demand for data centers.

“It is a community that supports the growth of the industry. We need more data centers in this country,” he explained.

READ: Digital Edge to usher new energy efficiency standards to PH data center market

Telco players like PLDT Inc. and Globe Telecom have been investing heavily to build up their data center capacities in recent years.

The Pangilinan-led company is set to open a 50-MW data center in Laguna by July.

The data center arm of the Ayala-led group, meanwhile, held a groundbreaking ceremony for its 124-MW data center in Fairview, Quezon City last year.

The Department of Information and Communications Technology said last year it was expecting the local data center capacity, currently at 60 MW, to grow by 500 percent in the next two years due to increasing investments.