Navigating data centre opportunities across APAC - Philippines

The Philippines is a dynamic and emerging data centre market. The market was valued at US$633 million in 2024 and is expected to grow at a CAGR of 20.89% to reach US$1.97 billion by 2030.

To explore settings in other jurisdictions visit our APAC Regulatory Guide.

Sources: Worldometer, Statista, Inquirer, PNA

The Philippines government has also been actively promoting the development of data centres through various incentives and regulatory support, positioning the country as an attractive destination for investment.

Nevertheless, the country faces challenges such as foreign ownership restrictions and existing utility infrastructure limitations. There has been an increased focus on sustainability, and the country’s commitment towards renewable energy initiatives and government support provides opportunities for growth in the data centre market.

Government incentives

The Philippines government offers a range of incentives to attract data centre investments, including tax holidays, tax and duty exemptions on imported items, tax credits and additional deductions.

The Philippine Economic Zone Authority monitors and evaluates the developments and requirements of ecozones (where data centres are permitted), providing a favourable environment for investment. The 2022 Strategic Investment Priority Plan (SIPP 2022) and the Corporate Recovery and Tax Incentives for Enterprises Act of 2021 (Tax Incentives Act) also offer enhanced deductions and preferential corporate income tax rates for data centres.

Renewable energy and sustainability initiatives

The Department of Energy has set ambitious targets for renewable energy, aiming for a 35% share of renewable energy in the national electricity generation mix by 2030 and 50% by 2040.

The Green Energy Option Program (GEOP) allows new connections with an estimated monthly peak demand of ≥300kW to source power directly from renewable energy. These initiatives provide data centres with opportunities to adopt sustainable practices and reduce their carbon footprint, as well as ensuring secure grid connection.

Longer-term land leases

The maximum duration of long-term leases of land granted to foreign investors is expected to extend from 50 years (renewable by a further 25 years) to 99 years.

At the time of publication, a proposed bill - House Bill No. 10755 - has been passed by both the House of Representatives and the Senate. This will amend the Investors' Lease Act of 1993 and is in the process of being finalised and sent for the President’s signature. Given that land acquisition is a key factor for developing data centres, an increase in the allowable lease terms for foreign investors provides an additional driver of data centre investment in the Philippines.