Philippines Data Center Server Market Size (2024 - 2029)

The Philippines data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity, raised floor space, and the installation of racks, particularly concentrated in Metro Manila. Additionally, the development of submarine cable systems is set to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Philippines Data Center Server Industry

Philippines Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 2.70 Billion
Market Size (2030) USD 8.02 Billion
CAGR (2024 - 2030) 19.90 %
Market Concentration High

Major Players

Philippines Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Philippines Data Center Server Market Analysis

The Philippines Data Center Server Market size is estimated at USD 2.70 billion in 2024, and is expected to reach USD 8.02 billion by 2030, growing at a CAGR of 19.90% during the forecast period (2024-2030).

The Philippines data center server market reached a value of USD 1.2 Billion in the previous years, and it is further projected to register a CAGR of 19.9% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (SMEs), government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Philippines data center market is expected to reach 954.2 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.3 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 266.4 K units by 2029. Metro Manila is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 23 submarine cable systems connecting the Philippines, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Apricot, which stretches over 11,972 Kilometers with landing points from Baler and Davao in the Philippines.

Philippines Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Philippines data center server market is segmented by form factor (blade server, rack server, and tower server) and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
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Philippines Data Center Server Market Size Summary

The Philippines data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises (SMEs), and the need for enhanced local data security as mandated by government regulations. The market is further bolstered by substantial investments from domestic players and the expansion of telecommunications infrastructure, including the deployment of 5G networks and fiber connectivity. The construction of new data centers, along with the planned increase in IT load capacity, raised floor space, and the number of racks, underscores the robust demand for data center servers in the region. Metro Manila is anticipated to be a key hub for these developments, supported by the ongoing expansion of submarine cable systems to enhance connectivity.

The market is characterized by a competitive landscape with major players like Hewlett Packard Enterprise, Dell Inc., and IBM Corporation leading the charge. These companies are focusing on expanding their market share through strategic collaborations and product innovations, such as the introduction of new servers with advanced processing capabilities and energy-efficient features. The preference for rack servers over blade servers due to cost-effectiveness and space efficiency further drives the market, especially among organizations adopting cloud-based IT solutions. The rise of digital banking and fintech among MSMEs in the Philippines also contributes to the increasing demand for data center servers, as businesses seek to leverage digital platforms for growth and efficiency.

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Philippines Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Government Rollout Towards Fiber Connectivity and 5G Deployment

      2. 1.2.2 Demand for Cloud Computing Among Enterprises

    3. 1.3 Market Restraints

      1. 1.3.1 High CapEx for Building Data Center Along With Security Challenges

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

Philippines Data Center Server Market Size FAQs

The Philippines Data Center Server Market size is expected to reach USD 2.70 billion in 2024 and grow at a CAGR of 19.90% to reach USD 8.02 billion by 2030.

In 2024, the Philippines Data Center Server Market size is expected to reach USD 2.70 billion.

Philippines Data Center Server Market Report Snapshots

Philippines Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)