Data center power usage seen to grow by 28% to 89 MW

DATA CENTERS are expected to consume approximately 89 megawatts (MW) of electricity this year, driven by the growth of new facilities, according to the Data Center Association of the Philippines (DCAP).

“This year, we’re looking at growth in the capacity of utilization. Power usage in the data center is going to grow to 89 MW… That’s a 28% compound annual growth rate (CAGR). That’s good growth. With all the new data centers coming online, we’re growing to meet the future demand that is coming,” DCAP Co-Founder Steven Davis told BusinessWorld.

Last year, data centers used 68 MW of power.

Mr. Davis noted that power companies, such as Aboitiz Power Corp., Manila Electric Co. (Meralco), and First Gen Corp., are adapting to meet the needs of the data center industry.

“Power companies have done a great job adapting. They have established processes for how to apply for power at that level — how to provision it, execute it, and utilize it,” he said.

Data centers are critical facilities for companies with significant data processing and storage needs.

Currently, key players in the data center industry include PLDT Inc. and ST Telemedia Global Data Centres Philippines (STT GDC). PLDT, through VITRO Inc., operates 11 data centers, while STT GDC has seven.

DCAP is targeting a total data center capacity of 1 gigawatt (GW) by 2029, which is expected to require an estimated total investment of about $18 billion.

“As we grow and reach that goal of 1 GW, it’s going to be an $18-billion investment. We already have companies looking at 100 MW and 300 MW sites, which is fantastic,” Mr. Davis said.

“We are starting to gain attention because all the users are here. We’re starting to gain attention because the government is amenable. The power’s available. We have the space and property. Everything is heading in our direction, signaling that we could become the secondary digital infrastructure hub for Southeast Asia,” he added.

DCAP emphasized that the Philippines is set to emerge as a significant player in the global data center market, driven by “a combination of technological advancements, favorable economic conditions, and a rapidly growing digital economy.”

“For global operators, the Philippines offers a strategic location in Southeast Asia with growing demand for cloud services and an underserved market,” it said.

“By expanding into the country, operators tap into a rapidly growing digital economy, diversify their regional footprint, and benefit from competitive land and power costs,” it added. — Sheldeen Joy Talavera