The Department of Information and Communications Technology (DICT) has called for a significant increase in funding to accelerate the development of data center infrastructure within the Philippines. The DICT has emphasized the importance of investing in robust data centers to support the country’s digital transformation, citing the growing demand for computing power and the need to ensure data sovereignty.
The Philippine government is facing challenges in establishing its own data centers. Despite the increasing demand for computing power and the need to safeguard sensitive data, the government has yet to complete a single data center.
According to the Department of Information and Communications Technology (DICT), the limited funding allocated for data center development has hindered progress. While the DICT has received P425 million for data center management, the ideal budget for development is estimated at P15 billion. The department has submitted a proposal for P2.3 billion, but the approved allocation is only P750 million.
The DICT’s current strategy involves co-locating government data within cloud services, which raises concerns about data security and sovereignty. The government’s reliance on foreign cloud providers exposes sensitive information to potential risks and limits the country’s control over its data.
To address these challenges, the DICT has requested additional funding in the National Expenditure Program for 2025. The proposed allocation of P10.43 billion aims to support various initiatives, including the National Government Portal project and the e-Government System Development program.
Lawmakers have emphasized the importance of data centers for the government’s digital transformation. Party-list Rep. Bernadette Herrera-Dy highlighted the need for the government to own its data and avoid relying on foreign cloud services.