PLDT Primes PH as Newest Data Center Hub in Asia

Emerging data center market poses potential to be next big economic driver 

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The global pandemic has been a catalyst for digital transformation as there was a steep rise in the usage of consumer applications from social media to video streaming, gaming, e-commerce, online learning, and telehealth, among others. 

It has also pushed the enterprise and public sector over the technology tipping point by accelerating their cloud adoption by increasingly migrating workloads to the cloud and massively using collaboration  platforms supporting work from home arrangements. 
Jeff Mendoza, Asia Pacific Regional Head of PLDT Enterprise said, “The digital transformation dictated by the pandemic among the enterprise and consumer sectors have pushed the hyperscalers in the cloud and content provider space to step on the gas with their data center deployment plans across relevant countries. The goal is to optimize subscriber experience through data sever localization while enhancing network resilience in growth markets, including the Philippines.” 
Digital Philippines at a Glance 
The digital profile of the Philippines has motivated these hyperscalers to build their digital infrastructure within the archipelago. As these big techs strive to reign in the intensified battle of eyeballs or subscribers, the population and the digital economy of a country are critical considerations in crafting their data center expansion road map.
According to We Are Social’s Digital 2020, the Philippines is home to the second-largest eyeballs within the Southeast Asia with a population of 109M. It has one of the youngest median age of 25.8 years old versus the average age within the region of 31.8, pointing to a sizable tech-savvy population which has stronger digital appetite and adoption to technology. 
The nation takes pride in having one of the highest mobile penetration rates in the region at 138%. It also has 74M internet users with netizens spending 10.5 hours online which is the longest across the globe. 
5G Fueling Data Center Demand 
The country has also been cited by the GSMA, a global mobile industry organization for mobile network operators worldwide, as an early adopter of 5G, alongside China, Singapore, and Hongkong. 
Smart, the wireless subsidiary of PLDT, has launched its 5G services in key locations in the Philippines. Hence, fueling a stronger demand for edge data centers. 
Philippines as an Emerging Data Center Market 
“Hyperscalers are in need of options to serve the fast growing demand within region. This is the time when the emerging data center markets such as the Philippines, is anticipated  to take advantage of this window of opportunity,” Mendoza added.
According to Structure Research, a research firm niched in the data center internet and cloud space, the Philippines is one of the emerging DC markets, having a high growth rate alongside Malaysia and Thailand. 
Robust Submarine Cable Infrastructure 
At present, there are nine (9) existing submarine cables landing in the Philippines, with seven (7) more international cable systems upcoming. These resilient subsea cables are complemented by six (6) diverse Cable Landing Stations strategically located within the archipelago while more stations are already anticipated to be built in the next three years. 
Moreover, the Philippines has over 600,000 kilometers of fiber optic cables spread across the islands to date with PLDT owning 524,000 kilometers of the said fiber network. PLDT also has the lion's share of submarine cable capacities terminating in the Philippines.
Greening the Power Grid
Touted as one of the early renewables leaders in the region, with a sustainable energy mix of 24%, the Philippines strives to push for more green sources of power thru the Department of Energy’s Renewable Power Standards circular. 
The government’s sustainability campaign anticipates renewable power to generate 35% of the country’s electricity by 2030. This national program is aligned with the sustainability initiatives of the hyperscalers via their respective commitments to renewable energy utilization across their operations. 
New Destination for Hyperscalers 
Possessing a burgeoning digital economy, robust domestic and international infrastructure in place, a progressive renewable power mix, and data centers at par with the technologically developed countries, the Philippines is an ideal destination to support the hyperscale data center requirements of hyperscalers.
“The Philippines is indeed a strong player in the emerging market space for globally certified data centers while it thrives on value creation within the digital economy. We expect in-country DC rollouts of global technology players to accelerate,” Mendoza concluded.
The country’s major data centers are primarily operated by PLDT through its ICT arm ePLDT Inc. The group currently owns a network of 10 globally certified VITRO data center facilities strategically located across the country, with a total capacity of 72MW and over 9,000 racks, designed to support the transformation and fortify the resiliency of enterprises. Since network is as essential as data center reliability, all VITRO data center facilities are designed to be carrier-neutral, allowing other telcos both foreign and local to provide network connections based on customer preference.
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