Philippine Ecozones Need Right Blend of Infra, Perks for Data Center Boom

PHILIPPINE economic zones (ecozones) could capture data center expansion investment amid growing global demand, the World Trade Center Association (WTCA) said. “Free zones that can provide the right combination of infrastructure, incentives, and investment support are exceptionally well-positioned to attract this global industry,” Scott Wang, WTCA vice-president, Asia-Pacific, said in a statement on Tuesday. The Philippine Economic Zone Authority’s growing portfolio of information technology (IT) parks and specialized centers could potentially attract high-value tech investments, the WTCA said. Data centers house computer systems needed to store and process large amounts of data. Global demand for data centers is driven by growing adoption of AI, cloud computing and digital commerce. Global supply bottlenecks in data centers pose opportunities for Philippine ecozone developers hubs in Cavite, Laguna, Bulacan, and Clark, the WTCA added. It said the recent lifting of the moratorium on new IT park and IT center applications in Metro Manila could also bring in more data center investment. The WTCA said a “tri-ecosystem” approach would help connect data center investors with suitable locations. “The WTCA network connects developers directly to hyperscalers and capital sources, free zone incentives lower construction and equipment costs, and ready infrastructure shortens time to deployment,” it said. The Philippines is part of the WTCA’s global network through World Trade Center Metro Manila in Pasay City. “The organization is looking at how that network can extend beyond its Metro Manila home to support emerging economic zone opportunities,” the WTCA said. It noted that data centers can help Philippine property firms and ecozone operators increase the value of their developments. “Beyond traditional IT-BPO office spaces and standard logistics warehouses, data centers offer developers the highest value-added return per square meter,” it said. At present, the Philippines’ data center capacity is at 200 megawatts and could hit 1 gigawatt (GW) by year’s end. Data center operators’ plans remain on target, the Department of Information and Communications Technology has said. — Beatriz Marie D. Cruz