Philippines: The Next APAC’s Data Center Hub?
Two years after the pandemic pushed businesses to embrace digitization, corporations are investing even more in upgrading their technology capabilities. Datacenter Hub demands are increasing at an exponential rate as a result of this transition, notably with the rise of smart city trends, e-commerce, cashless transactions, cloud usage, and the need for faster internet.
As digitization continues pace during the pandemic, Fitch Solutions Country Risk and Industry Research predicts a large investment in digital infrastructure and data center construction across the whole of southeast Asia (SEA). According to Research and Markets, the APAC data center hub market will see at least USD 94 billion in investments by 2027, with a compound annual growth rate (CAGR) of 6.30% from 2022 to 2027.
In the Philippines, this trend is also evident. Organizations are being obliged to make the most of the digital platform, which has accelerated the expansion of the country’s data center business, which is now the second most developed among SEA countries, according to the Department of Trade and Industry (DTI). Manila, the country’s capital, with a CAGR of 14.2%, second only to Hanoi, Vietnam, with 14.5%.
APAC’s Next Hyperscaler Hub
Several corporations have already announced their plans to build data centers in the Philippines. For example, a telecom behemoth is planning to build a telco-agnostic hyperscale data center hub in the country. Meanwhile, a cloud computing company recently announced its desire to open its first data center in Manila to expand its Asian reach. In Cainta, Rizal, a Singapore-based company recently revealed plans to build the country’s largest hyperscale data center hub.
This tendency is fueled by several variables. First, according to data analytics and consulting firm Global Data, cloud spending among businesses in the Philippines is predicted to increase from $1.8 billion to $2.6 billion by 2024. According to the DTI, companies considering establishing data centers can make use of the country’s talent pool and ready infrastructural support, including telecommunications, connectivity, and the availability of data centers for colocation, as well as the country’s renewable energy preparedness.
The Philippines is positioned to be the next strategic hyperscale data center hub in APAC, with these plans slated to begin this year and as the country’s digital and economic prominence increases. Massive business-critical facilities built to efficiently support strong, scalable applications are referred to as hyperscale data center hubs. The government has identified hyperscalers as one of the major industries to support as part of its investment promotion drive, making it simpler for them to expand their companies in the country by establishing cloud and network infrastructure.
The Changing Data Center Landscape
Experts warned that companies looking to develop data centers in the country should be mindful of the shifting data center environment as these trends emerge.
Organizations must be quick to catch on to the rapidly changing data center landscape, especially within the ‘never normal,’ to secure their success today and in the future. Here are some identified trends that will affect the data center sector in 2022 to assist enterprises in their assessment:
Climate-Friendly And Sustainable Data Centers
Filipino consumers have been transitioning to more environmentally friendly products and services over the last year. According to a recent Kantar survey, 75% of Filipino customers choose brands that offer strategies to reduce environmental consequences. This prompts businesses to adopt sustainable practices. In the data center market, this trend is also evident.
Datacenter sector may be adopting climate-friendly methods in recent years. However, 2022 will be the year when operators fully commit to the cause. Businesses will use sustainable energy methods for their operations, utilizing a digital solution that matches data center energy use with 100% renewable energy. It will also allow an uptime of 24 hours a day, seven days a week.
AI Adoption Accelerated During The Pandemic
The requirement for real-time processing and decision-making is becoming increasingly important as today’s networks become more complicated and distributed, and the metaverse augmented and virtual reality demands become more significant. Full-time manual management will be difficult given an increasingly widespread hybrid model of work, public and private clouds, colocation, and edge. Artificial intelligence (AI) and machine learning (ML) will be critical in optimizing the performance of these networks.
The Philippines’ Department of Trade and Industry (DTI) earlier stated that AI adoption may boost the country’s gross domestic product (GDP) by 12%, or USD92 billion, by 2030.
Post-Pandemic Data Centers
Remote work, e-commerce, telemedicine, and video streaming have all become commonplace in recent years. As a result, more activities will be concentrated on the outskirts. According to a recent VMware study, workload dispersion to data centers will increase from 5% to 30% in the next five years.
According to a forecast by Cushman & Wakefield, the data center building of 2.9 gigawatts will begin in 2020, up from 1.
6 gigawatts in 2020, to satisfy the needs of the post-COVID future.
Larger System Integration
Integrated solutions that allow modular capacity expansions have been employed by many data center equipment providers for years. Data centers, on the other hand, will collaborate with providers in 2022 to better integrate larger systems, allowing for smooth interoperability. This integration will benefit from reduced construction costs, lower deployment costs, and more flexible capacity management.
Make Building And Maintaining Data Centers Possible
With the rise of data centers in the Philippines, and as the country’s landscape continues to change, businesses need a partner who can provide service solutions to support infrastructure changes and ensure vital running smoothly and that’s where AKCP comes in.
AKCPro Server Monitoring Software
Whether it’s retail or colocation center operators, it takes a lot of effort to maintain and manage a data center. You’re continually monitoring the data center’s environment to ensure that potential issues are detected as soon as possible so that uptime is maximized.
IT personnel need modern, intuitive tools and systems like AKCPro Server to give business intelligence around their data center infrastructure components for better decision-making to negotiate these complexities.
AKCPro Server is our world-class central monitoring and management software. Suitable for a wide range of monitoring applications. Monitor your infrastructure, whether it be a single building or remote sites over a wide geographic area. Integrate third-party devices with, Modbus, SNMP, and ONVIF compatible IP cameras.
All data is collected and monitored through AKCPro Server central management software. This world-class DCIM software consolidates all your deployed hardware and virtual sensors into customizable dashboards. Features include:
- Drilldown Mapping Interface.
- Modbus, SNMP, And PING Virtual Sensors (Licensed feature).
- Live PUE Calculations.
- Customizable Desktops.
- Access Control Management.
- Centralized Monitoring And Management Of Sensors And Base Units.
- FREE For Monitoring All AKCP Devices
- ONVIF Camera Integration (Licensed Feature)
From An Intelligent Rack To Data Center
Benefits:
- Live PUE numbers
- Control and monitor CRAC units
- Thermal mapping of cabinets
- Integrated solution
- Control and monitor access to cabinets
- Control and monitor access to rooms
- Monitoring of complete power train
- Free DCIM software
Reference Links:
https://kmcmaggroup.com/research-insights/2022/what-are-data-centers-and-why-is-it-the-next-big-thing-in-philippine-real-estate/
https://www.commscope.com/blog/2017/time-to-learn-how-to-adapt-to-the-evolving-data-center-landscape/
https://business.inquirer.net/332780/pldt-to-lure-global-tech-giants-with-largest-data-center-in-ph
https://www.pna.gov.ph/articles/1168051