The Board of Investments (BOI) and the Data Center Association of the Philippines (DCAP) have teamed up to train investment promotion agencies on the fundamentals of data centers, a crucial step as the country positions itself as a hub for digital investments.
The training underscores the government’s push to build the Philippines’ digital infrastructure, which is vital for emerging technologies like artificial intelligence (AI) and the Internet of Things (IoT).
The Philippines’ data center industry is growing rapidly, driven by increasing demand for digital technologies and cloud-based services. However, a key challenge remains the availability and sustainability of power sources.
DTI Undersecretary and BOI managing head Ceferino Rodolfo called the sector “the backbone of the Philippines’ digital transformation.”
The government has addressed the power challenge by liberalizing the foreign equity cap on renewable energy (RE) projects, a move that aligns energy policy with the growing demands of power-intensive technologies like AI.
Further support for the industry comes from the CREATE MORE Act, which identifies data centers, AI, and cybersecurity as priority sectors eligible for Tier III incentives. This highlights the government’s commitment to developing RE-powered data centers as part of its broader sustainable development agenda.
Rodolfo underscored the need for both policy and capacity building. “Beyond policy and promotion, what’s equally important is building the capacity of both people and the sector, including IPAs like us, not only to advocate for the sector but also to manage incentive administration effectively,” he said.
DCAP chairman Steven Davis, who led the training, explained why the Philippines is uniquely positioned to become Southeast Asia’s secondary digital infrastructure hub. He cited the country’s human capital, cultural adaptability, and geographic potential.
“Power has always been the largest concern,” Davis said, but acknowledged the government’s efforts to collaborate with the industry.
BOI executive director Ma. Corazon Halili-Dichosa noted the essential nature of data centers in today’s digital economy. “In today’s environment, data centers are not anymore optional infrastructure; they are essential,” she said.
She said the government should foster a supportive ecosystem to meet the growing demand for digital services and effectively position the Philippines for data center investments.
The training session was part of a BOI and DCAP initiative to enhance the capacity of investment promotion agencies by providing them with a fundamental understanding of data center infrastructure, industry standards, and emerging trends.
