Data Centers in Manila

Manila – Southeast Asia's Emerging Digital Hub

Manila is rapidly becoming a critical data center market for businesses targeting the Philippines' massive domestic digital economy. Its strategic location and improving connectivity provide a solid platform for companies to deliver low-latency services to one of the most active online populations in the world, directly impacting user experience and revenue growth. This emerging hub offers a compelling alternative for regional deployments in Asia-Pacific.

Manila: At A Glance

Network & Connectivity Ecosystem

Manila's connectivity landscape is defined by its strategic importance as a landing point for numerous international subsea cables, linking Asia and North America. This provides a foundation for a resilient and growing digital ecosystem.

Carrier Density & Carrier Neutrality The market features over 10 carriers, as of September 2025. A healthy mix of local and international providers operate within carrier-neutral data centers, offering customers choice and competitive pricing for transit and transport.

Direct Cloud On-Ramps Manila provides direct, low-latency access to major cloud providers. As of September 2025, the market has over 1 on-ramp connecting to 1 cloud region.

• AWS

Internet Exchange Points (IXPs) The primary local IXP, PHOpenIX, facilitates efficient domestic traffic exchange, reducing latency for local users. Most large-scale peering, however, occurs through private connections within major colocation facilities.

Bare Metal Bare metal server options are readily available from multiple providers in Manila, offering dedicated compute for performance-sensitive applications. Hivelocity and phoenixNAP are among the global providers serving the region.

Power Analysis

Average Cost Of Power Industrial power costs in Manila are approximately US$0.11/kWh, as of December 2024. This price point is competitive within Southeast Asia, making large-scale deployments financially viable without sacrificing access to a major economic center.

Power Grid Reliability The power grid in Metro Manila's core business districts is generally stable, supported by modern infrastructure and redundant substations. Data center operators engineer their facilities with multiple utility feeds, extensive UPS systems, and on-site generator backup to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in the Manila area are strategically located to serve the country's primary economic zones, including Makati City, Bonifacio Global City (BGC), and Ortigas Center. This proximity allows financial services, BPOs, and enterprise customers to achieve extremely low latency for critical operations.

Regional Market Reach Deploying in Manila provides direct access to the Philippines' young, digitally fluent population of over 110 million people. It serves as an effective hub for content delivery, e-commerce, and digital services tailored to this large and growing consumer market.

Tax Advantage For Data Centers The Philippines does not currently offer specific tax incentives for data center construction or operation. Businesses should plan for the standard corporate tax structure and the 12% Value Added Tax on services.

Natural Disaster Risk

Manila is in a region with high exposure to natural hazards, rated High (5.4/10), as of September 2025. This risk profile demands that data centers are built to the highest seismic and weather-resistant standards.

Key risks include:

• Earthquake: (9.7/10) The region is seismically active.
• Tsunami: (9.4/10) A significant risk for coastal locations.
• Tropical Cyclone: (9.2/10) The Philippines is frequently in the path of powerful typhoons.
• Coastal Flood: (8.9/10) Storm surge and heavy rains pose a flooding risk.
• River Flood: (6.7/10) A notable risk, particularly during monsoon season.