Data center provider bullish on growth as hyperscalers arrive

Bee Information Technology PH Inc., the country’s largest telco-neutral data center providing telco-grade and tailored data center services, is confident that the Philippine data center market is ready to cater to the needs of global hyperscale companies. 

Data center provider bullish on growth as hyperscalers arrive
Beeinfotech PH president and CEO Reynaldo Huergas
This is due to a variety of factors, including the growth of enterprise cloud and data center adoption in the market, rising Internet use and the recent improvements in the nation’s information and communications technology capabilities.

Recent forecasts revealed that developments in the Asia Pacific make the region a prime destination for hyperscalers. According to Frost & Sullivan, APAC will lead all the other regions as the top data center market in the world by 2025. The firm also noted that the Philippines is expected to experience boom in data center growth, with an average increase of 24 percent in data center supply within the next three to five years. This was highlighted by the Department of Trade and Industry in a recent online event announcing the arrival of hyperscale companies in the country.

“These projections show how the country’s ICT abilities have vastly improved throughout the years. It’s a testament that the Philippines is ready to take on a pivotal role in ensuring that the online services people around the world use daily and enjoy keep running through hosting the infrastructure of hyperscale companies within shores,” said Beeinfotech PH president and chief executive Reynaldo Huergas.

Hyperscale refers to the expansion of significant resources in a data center to quickly adapt to customer demand. The companies that have this ability are mostly IT enterprises that deal with a lot of real-time data through their online services, such as Google, Microsoft and Amazon.

Huergas said that despite these companies having their own data centers, certain logistical considerations make it much more feasible for them to colocate or host infrastructure within data center partners that already have the facilities. Beeinfotech PH’s own multi-million peso “The HIVE” facility launched in August has a 3,000-plus rack space well-suited for scaling resources quickly.

“It will take companies years to build their data center, not just because of the construction itself, but due to several hurdles such as the paperwork and permits that need to be complied with first. By colocating resources to a local data center partner, hyperscale companies can deploy immediately to answer customer demand at once,” said Huergas.

Beeinfotech PH notes that several hyperscale companies have been eyeing the Philippines for a while now. The country’s positive connections with the East and West make it a gateway for both to expand to the fast-rising APAC market, while allowing companies within the region to make their mark on the rest of the world. Beeinfotech PH also cites that the surrounding data center hubs in other ASEAN countries have become too congested to support the critical compute zones needed by hyperscale companies.

The rising number of undersea cables strengthening the country’s connectivity is also attracting global companies. There are 10 international submarine cable systems providing connectivity to the Philippines, and by 2024, there will be five more trans-Pacific subsea cables connecting the market to the rest of the world.

Beeinfotech PH believes that the high-ranking Internet use of Filipinos makes expansion into the Philippines as lucrative as ever due to the possibility of tapping a digital-savvy customer base of nearly a hundred million online users.

“The high Internet usage of Filipinos translates into a profitable market for hyperscalers. But to reach them first, hyperscalers have to bring their resources closer by either expanding or colocating. The closer their presence is, the faster the delivery of their content will be, thus enabling them to attract and retain a significant audience,” said Beeinfotech PH senior vice president for strategic planning and business development Maricar Nepomuceno.

The rising data center market in the Philippines is another reason for hyperscalers to show up. Beeinfotech PH is among the few data center service providers in the Philippines with the facilities to host hyperscale companies. In addition to extending truly telco-neutral and bespoke colocation services, its HIVE facility offers an open canvas within its premises to meet all stringent requirements and allow hyperscale companies more freedom in their colocation methods.

Topics: Bee Information Technology PH Inc. , Frost & Sullivan , Department of Trade and Industry
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