Manila: The developer of the Philippines' largest data center has addressed concerns that the country is uncompetitive for data center investments due to high electricity prices. ST Telemedia Global Data Centres (STT GDC) Philippines chief executive officer Carlo Malana informed reporters that power costs for data centers in the Philippines now match those of regional peers like Thailand and Malaysia and are cheaper than those in Singapore, the current data center hub in Southeast Asia.
According to Philippines News Agency, Data Center Association of the Philippines (DCAP) chairman Steven Davis mentioned that despite the perception of higher power costs discouraging data center investments, actual rates have become competitive with ASEAN peers. Davis pointed out that while the household electricity rate in 2020 was approximately USD0.20 per kilowatt hour (kWh), the industrial rate was only USD0.13 per kWh. He emphasized that the stigma of high costs persists even though the Philippines' power rates are now on par with countries like Indonesia, Thailand, and Vietnam.
Meanwhile, Malana announced that STT GDC is investing over USD1 billion in its 124-megawatt IT load capacity Fairview data center, set to open this year. Additionally, STT GDC will launch its 6-MW Cavite data center. Malana noted that STT GDC has seven data centers with a combined capacity of over 150MW, with four facilities already operational. He explained that the new data centers in Fairview and Cavite-2 were built with digitalization and cloud technology in mind, acknowledging that the rise of artificial intelligence could further accelerate demand.
STT GDC Philippines is a joint venture involving Singapore-based STT GDC, Globe Telecom, and Ayala Corp.