Philippines data centre alliance forms to boost digital hub status

Major data centre operators in the Philippines have formed a new industry alliance to strengthen the country's position as a Southeast Asian digital hub. The group, named Data Centre Operators of the Philippines (DCPH), brings together VITRO, ST Telemedia Global Data Centres (Philippines), YCO Cloud, Digital Edge Philippines, Digital Halo and A-FLOW. Combined, these companies have a total IT power capacity of 473MW.

Industry collaboration

DCPH aims to unify the sector's approach to digital infrastructure development and drive closer cooperation among industry stakeholders. The group intends to work with power providers to ensure competitive electricity rates and better access to renewable energy. Collaboration with telecommunications companies to enhance connectivity is also a key focus. Joint engagement with government agencies, particularly the Department of Information and Communications Technology, is planned to promote supportive policies, including those relating to data localisation.

Market potential

The establishment of DCPH comes as demand for hyperscale, AI and next-generation technology infrastructure rises. The group's initiatives are expected to help sustain industry growth, support local talent development, and keep the Philippines competitive within the regional digital economy. Data centre capacity in the country is increasingly seen as a cornerstone for economic and digital advancement.

Focus on localisation

Data localisation emerged as a priority area for the alliance. DCPH members highlighted that managing and storing government data within the Philippines is critical for safeguarding national security and protecting citizen information. The group noted that Indonesia, Thailand, and Malaysia have already put in place stringent data localisation policies which they believe underpin data sovereignty and economic growth in those markets.

"As digital transformation and AI adoption accelerate worldwide, this alliance marks a pivotal step toward building a future-ready and globally competitive digital economy for the Philippines-one powered by data centers, the backbone of digitalization," said A-FLOW.

Infrastructure requirements

DCPH emphasised the need for robust infrastructure to attract international investment in cloud and AI services. The alliance argues that effective data localisation policies could enhance infrastructure resilience and help position the Philippines as a destination for further technology investments. By enabling the seamless movement of data across borders, the group believes the country can better support its ambition to become a leading regional digital hub.