Hyperscalers driving data centre growth in the Philippines

Hyperscalers driving data centre growth in the Philippines
The ICT infrastructure has been improving in the Philippines over the past years.
Image courtesy of Beeinfotech

The rising number of undersea cables is also strengthening the country’s connectivity, attracting more global companies.

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Data centre services provider Beeinfotech said global hyperscale companies are key to the growth of data centres in the Philippines, buoyed by enterprise cloud adoption in the market, rising Internet use and improvements in the nation’s ICT capabilities.

Hyperscale refers to the expansion of significant resources in a data center to quickly adapt to customer demand. According to Beeinfotech, the companies that have this ability are mostly IT enterprises that deal with a lot of real-time data through their online services, such as Google, Microsoft, and Amazon.

According to Frost & Sullivan, APAC will lead all the other regions as the top data centre market in the world by 2025.  The research firm said increased investments by data centre operators, increased deployment and usage of IoT and Big Data, the adoption of a hybrid model with cloud and traditional data centres, and strong growth in emerging economies will serve as key market drivers

Philippines seeing 24% growth in next five years

Beeinfotech predicted that the Philippines is expected to see an average increase of 24% in data centre supply within the next three to five years.

“The country’s ICT abilities have vastly improved throughout the years. The Philippines is ready to take on a pivotal role,” said Reynaldo Huergas, Beeinfotech President and CEO.

Huergas added that logistical considerations have made it feasible for companies to co-locate or host infrastructure within data centre partners that already have the facilities. “Beeinfotech PH’s facility launched in August, for example, has a 3,000-plus rack space well-suited for scaling resources quickly.

“It will take companies years to build their data center, not just because of the construction itself, but due to several hurdles such as the paperwork and permits that need to be complied with first.”

The rising number of undersea cables strengthening the country’s connectivity is also attracting global companies said Beeinfotech. Currently, there are 10 international submarine cable systems providing connectivity to the Philippines, and by 2024, five more trans-pacific subsea cables will connect the market to the rest of the world.

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