Asia Pacific Data Centre Update

APAC EMERGING MARKET OVERVIEW

KEY INDICATORS*

32MW IN OPERATION

9 OPERATORS, 16 DATA CENTRES

64MW UC / PLANNED

31% VACANCY RATE

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

The Philippines is an emerging market in APAC, with increasing numbers of data centre players evaluating the market for expansion. The country’s population boasts 67% internet penetration, with 36 million people yet to get online. Nearly all of the country’s power capacity is located in the Metro Manila area, with much of the 32MW composed of traditional telecommunication facilities and fewer high-end, modern spaces. The largest data centre operator in the market is ePLDT, the IT services branch of the Philippine Long Distance Telephone Company (PLDT), which is 20.35% owned by Japanese-based operator NTT, and operates 7.2MW. Next largest is DITO, with 3MW in live capacity and is 40% owned by China Telecom. DITO was the sole winner of the government-sanctioned bidding to become the third major telecommunications provider in the Philippines to challenge the duopoly of PLDT and Globe Telecom. The third largest is STT GDC, with live capacity including 3MW from Globe Telecom. Notably, Globe Telecom is 21.44% owned by Singapore Singtel. While power is available in most urban centres and industrial parks, only 25% of the power in the Philippines is renewable. Additionally, expect power demand to grow faster than current supply and investments in energy infrastructure. Available serviced industrial lands are limited due to current high demand affecting further growth in industrial land prices. Commercial land prices in CBDs and key urban areas remain relatively cheaper than regional counterparts. However, hyperscalers remain increasingly interested in the Greater Manila area and the larger Philippines given competitive land pricing, demographic trends and runway for cloud migration. Foreign ownership of land is generally not allowed; while data sovereignty has been largely voluntary in compliance, with specific regulations still pending before the legislators.

ECOSYSTEM DEVELOPMENTS • DITO launched Batangas Super Core Data centre in September with its parent company Udenna, China Telecom and ZTE. Phase 1 is estimated to be 2.5MW. • DFNN Inc. teamed up with US-based tech company Nautilus Data Technologies to develop a data centre in Bataan. • EdgeConneX has partnered with local firm Aboitiz and is planning two data centres around Manila. • ePLDT announced in August to further expand its data centre facility footprint by about 1,500 racks by the end of Q4 2022 and another 1,500 racks by 2023. However, the expansion has been delayed by cost increases and supply chain issues, with its 11th Vitro Data centre facility located in Sta. Rosa, Laguna expected for completion in 2024 for the initial phase. Once all phases are complete, the facility will have an estimated 100MW in capacity. • PLDT completed the landing of the Asia Direct Cable system (ADC) in Nasugbu, Batangas. The ADC is a partnership of China Telecom, China Unicom, National Telecom, Singapore’s Singtel, SoftBank Corp, Tata Communications and the Viettel Group. • YCO Cloud Centers , a local new entrant to the data centre space, seeks to develop a 12MW site in the southern portion of the Greater Manila market.