AS the Philippines is gearing to be the next hyperscaler hub in the Asia-Pacific (APAC) region, many opportunities for investments and partnerships await the hyperscaler and data center firms who want to invest in the country, especially from companies in Hong Kong and China.
During a webinar held by the Board of Investments, through its International Investments Promotions Service, and the Philippine Trade and Investment Center in Hong Kong on Aug. 24, 2022, Consul General in Hong Kong Raly Tejada highlighted the promising prospects and competitive advantage of the Philippines as the next investment destination for the hyperscaler and data center industry.
He cited the famous world-class hyperscaler firms that are already in the Philippines as examples to further prove the potential position of the Philippines as the next hyperscaler center.
"In recent years, the Philippines attracted some well-known global hyperscaler and data center giants to enter the country, such as Alibaba Cloud, Google Cloud, Microsoft Azure, HGC Global Communications, and so on. This is excellent evidence to prove that the Philippines has superior environment for hyperscaler activities and data center operations in the APAC region," Tejada said.
The Philippines is ready to be the next hyperscaler hub in the Asia-Pacific, said Trade Secretary Alfredo Pascual. "We believe that the hyperscalers industry will be the next growth engine of the Philippines. We are keen on helping hyperscalers cloud services and start-up ecosystem in the Philippines," he said.
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"We hope that you find these opportunities as promising as we do with your trust and passion. Let us make hyperscaler investments and partnerships happen in the Philippines," the Trade chief added.
During the event, Victor Aliwalas, vice president and technology management advisor of PLDT Enterprise, shared his thoughts about the Philippine data center market and noted that the country is ripe for digital and bullish growth prospects. In 2022, the Philippines is expected to lead the technology spending growth in Asia, ahead of Vietnam and Malaysia.
Aliwalas also highlighted the Jupiter cable system, the newest trans-Pacific cable facility connecting the Philippines to the United States and Japan. With a network distance of 14,866 kilometers, it is the fastest cable system between the Philippines and the US, or from Daet, Camarines Norte, and Los Angeles, California.
For her part, Department of Trade and Industry Undersecretary Rafaelita Aldaba presented the value proposition of the Philippines for the hyperscalers as well as the numerous government initiatives for the firms.
Aldaba said the Philippines has a thriving digital economy landscape with strong macroeconomic fundamentals that will continue to attract positive investment prospects. She also mentioned that the Philippines is an early adopter of 5G or fifth-generation technology in APAC, according to Moody's, along with Hong Kong, Singapore and Malaysia.
The Philippines as a high potential market was attested by two of the leading hyperscaler companies in Hong Kong and China.
Paul Lai, senior vice president, in-country project investment of HGC Global Communications Ltd., and Allen Guo, country manager of the Alibaba Cloud Intelligence-Philippines, both affirmed the country's readiness as an ideal investment location, citing its resilient economy amid the pandemic, its "welcoming regulatory environment," particularly with the passage of the amended Public Service Act and the Corporate Recovery and Tax Incentives for Enterprises (Create) Act, coupled with the Philippine businesses increasingly relying on cloud-based IT solutions for growth.