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Colliers Radar | Keeping up with demand: Developers plug into thriving data centre demand

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Data centres, E-commerce, Business transformation

The Philippines is one of the prime emerging data-centre markets in Southeast Asia. The country saw investments in the sector reach USD298 million (PHP15.5 billion) in 2021. The growing demand for these facilities will only increase, given the continued rise of e-commerce, proliferation of cloud computing technologies, and need for 5G connectivity, among many other factors.

 

Colliers is seeing a growing interest for data centers in the country. In our view, these facilities, which are used by enterprises to digitally house their critical business applications and information, should be sustained by the continued rise of e-commerce transactions, emergence of smart cities, proliferation of cloud computing technologies, need for 5G connectivity, increasing financial inclusion, and the government’s push to digitize its processes.

According to Paul Chua | Director and Head of Capital Markets & Investment Services, the Philippines is considered one of the largest early adopters of digital technology, be it for social media, e-commerce, education, and financial services. “With the large tracts of data needed to effectively optimize the exchange of information, the Philippines is now being touted as the next viable destination for data center operations.”

Colliers encourages developers of industrial parks to take a proactive stance in cornering demand from data-center operators. In our opinion, the conversion of brownfield assets should also be considered. Looking forward, we believe that joint ventures will be a popular route among foreign and local players. Stakeholders should maximize fiscal and non-fiscal incentives provided by the government.

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Data centres, E-commerce, Business transformation

Colliers Radar | Keeping up with demand: Developers plug into thriving data centre demand

Download Report
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