‘Philippine must catch data wave or risk being left behind’

MANILA, Philippines — International think tank Stratbase Institute has called on policymakers and business leaders to urgently align national infrastructure and data governance policies with the rising demands of the global digital economy, warning that the Philippines risks missing out on billions in potential investment if current trends continue.

Stratbase Institute president Victor Andres Manhit said that while Southeast Asia has become a hotspot for hyperscale data center and cloud infrastructure investments, the Philippines continues to fall behind its ASEAN neighbors in capturing these opportunities.

“The Philippines is one of the most digitally active nations in the region, yet we are underperforming where it counts most — attracting infrastructure that powers the digital economy,” Manhit said. “We are sitting on massive potential, but we lack the policy urgency and infrastructure readiness to capitalize on it.”

According to industry data from Cloudscene, Reuters and Data Center Dynamics, countries like Malaysia and Indonesia have secured digital infrastructure investments of over $16.7 billion and $5 billion, respectively, from global tech giants like AWS, Microsoft and Google. In contrast, the Philippines has only attracted $1.35 billion in data center commitments, primarily from local players such as STT GDC–Ayala and PLDT.

The global data center market is expected to grow to $652 billion by 2030, with over 1,189 hyperscale data centers already operating worldwide as of early 2025, based on reports from Synergy Research Group and Grand View Research.

At the center of this investment wave is the issue of data sovereignty — the regulatory control nations exert over data storage and cross-border transfers. The OECD has identified nearly 100 data localization measures across 40 countries, often adding significant operational costs for companies operating in restrictive markets.

Manhit emphasized that the Philippines currently holds a comparative advantage in this area due to its relatively open stance under the Data Privacy Act. Recent moves by the National Privacy Commission (NPC) — including the rollout of Model Contractual Clauses for cross-border data transfers — further improve the country’s digital policy environment.