Converge ICT Solutions Inc. has unveiled its intentions to allocate approximately $60 million for the establishment of three data centers within the next two years, in response to the escalating demand within the Philippines.
According to Dennis Anthony Uy, the co-founder and CEO of Converge ICT, the company’s strategic blueprint encompasses the construction of data centers in Angeles City Pampanga, Quezon City, and Cebu City.
Uy stated that each data center’s potential capacity would reach 600 racks per site, with the option for expansion up to 1,000 racks. Notably, the financial commitment for a singular data center is projected to be no less than $20 million.
Uy emphasized that the ambitious endeavor is anticipated to reach completion within a timeframe of 18 to 24 months. It’s worth noting that Converge already possesses data centers in Pasig City and Clark Freeport.
Uy additionally highlighted that the company is actively scaling back its capital expenditure for the current year, adjusting the range to fall between P9 billion and P10 billion, in contrast to the previously announced figures of P12 billion to P15 billion. This adjustment follows the company’s substantial investment of P22 billion in 2022 to facilitate nationwide expansion.
The Philippines is seen as a viable market for data centers because of its digitization initiatives and growing use of e-commerce. Additionally, due to the country’s strategic location and local data usage, data center expansion is still occurring in the Philippines market. Demand for data centers was a result of the internet’s rapid technological development.
Recently, the country’s Department of Information and Communications Technology (DICT) is looking forward to a substantial increase in data center capacity in the country, driven by the rise in data generation and the necessity for robust infrastructure to support digital transformation and cloud-based services.
DICT is anticipating a significant fivefold surge in data center capacity within the Philippines, projecting it to reach around 300 megawatts (MW) by the year 2025.