MANILA was ranked 58th out 63 countries in Cushman and Wakefield’s Global Data Center Market Comparison report, its first time to be placed on the list as it steadily attracts interest from major players.
“Manila, [a] new entrant in the survey, has been steadily attracting interests among major players due to the strategy of many corporates towards migration to digitalization, presence and demand for cloud storage due to network technology sophistication and the rapid growth of the digital economy of the Philippines,” Cushman and Wakefield said in a statement.
The real estate service consultancy firm’s ranking weighs 13 categories — market size, fiber connectivity, power cost, and environmental risk, among them — to determine the top overall markets as well as the top-performing markets in each category.
The Covid-19 pandemic has served as a catalyst for the country’s digitization, which shifted how businesses and organizations operate, said Cushman and Wakefield’s Director and Head of Research Claro Cordero.
“Along with the adoption of hybrid work model among many companies, the country’s online economy has shown vibrant growth over the past years,” Mr. Cordero added.
He said recent legislations have also boosted the country’s attractiveness as an investment destination.
“Meanwhile, the current administration is proposing a budget allotment of around P12 billion to support these digitization efforts,” he added.
He said the local data center market continues to gain traction from global data center investors, owners, operators and occupants.
“Tapping its full potential entails a heightened need for investments in support infrastructures to address the demand for fiber connectivity, reliable power supply sources and sustainability concerns, as well as availability of global-standard real estate options and ample measures to mitigate various related business risks,” he added.
In Asia-Pacific markets, Singapore placed first due to its strong performance across categories, including its low vacancy rate, low environmental risk, and smart city status.
Hong Kong placed second, driven by its strong connectivity, consistent demand, availability of cloud services and its business-friendly tax structure offsetting its high land prices.
Overall, Asia-Pacific markets accounted for 20 of the 63 markets reviewed. — Adrian H. Halili