Hyperscaler innovator SpaceDC met with the Board of Investments to update discussions on the creation of the largest hyperscaler hub in the Philippines.
The $700-million MNL1 Data Center project is a critical data center infrastructure that will spur economic activities including job opportunities to hundreds of Filipinos, said Trade Secretary and BOI chairman Ramon Lopez in a meeting with SpaceDC officials.
SpaceDC chief executive Darren Hawkins and chief investment officer Joshua Robinson met with the BOI on Feb. 28 and agreed on possible economic benefits for the Philippine economy.
Prior to the courtesy call, the BOI committed to link SpaceDC with relevant government agencies for documentary requirements, permits and licenses.
“The BOI has been proactive from the start by reaching out to us and offering BOI’s assistance and support to the project. In just a short period of time they have introduced us to key officials at both the national and the local level. They have provided guidance on what incentive programs we are eligible of. The information and introductions from BOI is already generating value for SpaceDC,” said Hawkins.
SpaceDC, a data center provider, is investing over $700 million in its planned 72-megawatt hyperscale data center in Cainta, Rizal, which will run on renewable energy.
The project is expected to commence by the end of 2022 and plans to expand footprint by 2023.
Trade Undersecretary and BOI managing head Rodolfo said the project could be a catalyst in promoting renewable energy in the Philippines.
“This project by the SpaceDC to establish the Philippines’ biggest hyperscale data center is truly remarkable, as it’s a leap forward toward our goal for our country to be the next hyperscalers hub in the Asia Pacific region. We are on the right track; we are Making It Happen,” Rodolfo said.
Hyperscalers are global technology companies providing cloud and internet-based services, which require huge amounts of space, power and connectivity because of their massive customer base and user demand.
The DTI has been pushing for the Philippines to be the next hyperscalers hub in the Asia-Pacific Region and the industry is seen to help propel economic growth and support the thriving digital economy.
Lopez said the amended laws and reformed policies in the Philippines can shore up hyperscaler companies to grow their business, citing amendments to the Foreign Investments Act, the Retail Trade Liberalization Act, the Public Service Act and the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act, which provides for lower-income taxes for businesses and a menu of incentives.
The BOI identified hyperscalers as a new addition to the key priority sectors up for intensive promotion. The Philippines encouraged hyperscalers to expand their businesses in the country to support cloud and network infrastructure in the Philippines.
Based on the figures of Global Data, Philippines’ enterprise spending on cloud services is expected to expand from $1.8 billion to $2.6 billion by 2024.
The government also ramped up the use of digital technology for government services with the implementation of the Central Business Portal –a single site for all business-related information and transactions such as securing business permits and licenses.