Philippines Poised to Enter Hyperscale Data Center Market with $2.7 Billion Investment

Manila-based construction and engineering company, ENDECGROUP, announced a significant investment of USD2.7 billion (PHP158 billion) to establish a data center facility in Tarlac. This project is expected to propel the Philippines into the global hyperscale data center map.

The agreement was solidified on Tuesday with a lease contract signing between ENDECGROUP, represented by Narra Technology Park Development Inc. managing director William Johnson, and Tarlac Governor Susan Yap. The 47-hectare land within the New Clark City (NCC) will house the upcoming Narra Technology Park.

"We expect the Narra Technology Park to put the Philippines on the map in the hyperscale data center market," said Johnson, highlighting the project's potential to attract leading global information technology (IT) companies.

The centerpiece of the park will be a 300-megawatt hyperscale data center, the largest in the country to date. Construction will be undertaken in three phases, each delivering 100 MW capacity.

With a targeted operational date of Q4 2025 for the first 100 MW phase, ENDECGROUP has committed USD890 million for each stage of development. An additional USD35 million has been allocated for site preparation.

Sustainability is a key focus for the project. Recognizing the high energy demands of data center operations, the Narra Technology Park will be powered by 100% clean energy sources.

The project is expected to generate over 1,500 direct jobs, with opportunities concentrated in IT operations, maintenance, and cybersecurity, providing a significant boost to the local workforce.

"We selected NCC in Tarlac due to several factors," explained Johnson. "Firstly, the availability of large land parcels in the area allowed us to achieve the scale required for a project of this magnitude."

"Secondly, NCC's master-planned environment provided an ideal setting for the development of a modern hyperscale data center hub," he continued.

The strategic location offers additional advantages due to its proximity to Metro Manila, the Clark Freeport, and Clark International Airport.

The 47-hectare parcel is part of a larger 50-hectare allocation designated by the Bases Conversion and Development Authority (BCDA) for the provincial government of Tarlac within the NCC.

BCDA Vice President Ken Peralta confirmed that the Narra Technology Park will be situated within the Clark Science City area of the NCC. The 9,450-hectare NCC is envisioned to be the Philippines' first smart, green, and resilient metropolis.