$700 million data center operational by year-end

A Singapore-based company plans to set up a $700 million hyperscale data center in the Philippines, which would make it the largest of its kind in the country, according to the Board of Investments (BOI).

The BOI said in a statement on Wednesday that its officials had a courtesy call last month with SpaceDC, a data center provider, which plans to set up its project in Rizal province and begin operations before the end of the year. The 72 megawatt hyperscale data center, which will run on renewable energy, is also expected to expand in 2023.

BOI said hyperscalers are global technology companies providing cloud and internet-based services, requiring large amounts of space, power and connectivity due to their huge customer base and strong user demand.

“SpaceDC’s project to build the Philippines’ largest hyperscale data center is truly remarkable, as it represents a leap towards our goal of becoming the next hyperscaler hub in the Asia-Pacific region,” said BOI, managing head of Trade. Undersecretary Ceferino Rodolfo.

As this industry represents significant potential for supporting the country’s path to economic recovery, BOI Chairman and Trade Secretary Ramon Lopez has pushed for the Philippines to become the next hyperscaler hub in Asia-Pacific.

Lopez pointed out that amended laws and reformed policies in the Philippines could encourage hyperscaler companies to grow their businesses, citing amendments to the Foreign Investments Act, the Retail Trade Liberalization Act, the Public Service Act, and the CREATE Law, which provides lower income taxes for businesses and a rationalized menu of incentives.

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