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Tag: Colocation

  • DCPH Upgrades Philippine Data Centers to Support Executive Order 119

    DCPH Upgrades Philippine Data Centers to Support Executive Order 119

    In September 2026, member operators in the Data Center Operators of the Philippines alliance began accelerating infrastructure upgrades to support domestic digital resilience.

    Local facilities are moving from single-digit kilowatt densities toward higher-density, AI-ready configurations to support mobile banking, telecommunications, e-commerce platforms, and government services.

    Colocation Model vs Massive Training Campuses

    Domestic operators in the Data Center Operators of the Philippines are investing in enterprise colocation instead of multigigawatt training hubs. Their sites serve commercial banks, retail platforms, telecommunications routing, and public sector administrative portals. These clients require local compute capacity rather than hyperscale training estates.

    The buildout focuses on multitenant sites in business hubs and industrial zones. Active operators include AFlow, Digital Halo, Digital Edge, ST Telemedia Global Data Centres, VITRO, and YCO Cloud.

    Upgraded Power and Cooling Infrastructure

    Server racks now pull more power per square meter, changing engineering requirements inside local halls. Operators are installing closed-loop chilled water cooling systems. These systems recirculate water internally to curb intake and ease municipal utility pressure.

    Power delivery bypasses residential distribution lines entirely. Commercial facilities buy electricity through Retail Electricity Suppliers under national retail competition rules. They connect directly to subtransmission voltage lines to keep heavy industrial loads off household networks.

    Sovereignty Mandates Drive Local Compute

    State policy is accelerating colocation adoption across Manila and adjacent provinces. Executive Order No. 119 mandates that restricted-access government records remain within national borders. Public agencies and affiliated vendors must now contract local data halls.

    Keeping workloads onshore cuts transit latency, prevents foreign exchange exposure, and satisfies financial regulatory standards. Colocation providers offering high power density in existing footprints will secure the largest share of this sovereign traffic.

    Expansion Along Luzon Industrial Corridors

    Data center construction previously concentrated in central business districts like Makati and Taguig. Grid congestion and tight real estate markets have since pushed new projects into Laguna, Cavite, and Batangas.

    Moving outward places compute capacity closer to regional logistics hubs and manufacturing plants. It also gives operators larger plots with direct subtransmission access.

    Attention now turns to delivery schedules for multi-tenant builds breaking ground across Greater Manila, alongside upcoming state compliance audits under Executive Order 119.

  • Hyperscale operators to boost colocation market

    Hyperscale operators to boost colocation market

    Synergy Research Group (SRG) says hyperscale operators are the fastest growing customer category for colocation providers. For both wholesale and retail colocation, 2018 revenue from hyperscale customers grew much more rapidly than revenues from other service provider customers and from enterprises.

    While the overall colocation market grew by 10% in 2018, revenues from hyperscale operators grew by 24% in the wholesale segment of the market and by 16% in the retail segment. Enterprise spending on wholesale colocation was relatively flat in 2018 compared to 2017, while enterprise spending on retail colocation grew by 7%.

    Synergy’s Q4 and year-end data shows that the total colocation market grew to over $34 billion in 2018.

    Growth was strongest in the APAC region, with China, Hong Kong, Japan and Singapore showing the highest growth rates in the region. Hyperscale operators comprise the world’s major cloud and internet service firms, including the largest operators in IaaS, PaaS, SaaS, search, social networking and e-commerce. The other service provider category includes telcos, non-hyperscale cloud providers and internet service firms, hosting/outsourcing companies and content & digital media service providers. The enterprise category includes all other industry verticals plus government and the public sector.

    “It comes as no surprise that hyperscale operators are providing a boost to colocation providers, as they are on a charge to rapidly extend their worldwide data center footprint and in 2018 ramped up their capex by no less than 43%,” said John Dinsdale, a chief analyst at Synergy Research Group.

    “In order to support this rapid growth they cannot just build their own data centers, so they also need to rely on colocation providers to lease out both large wholesale facilities and capacity at smaller edge locations. Hyperscale operators are becoming an ever-more important source of business for leading colocation companies such as Equinix, Digital Realty, Interxion, CyrusOne, QTS and GDS.”

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  • Colocation providers facing escalating challenges

    Colocation providers facing escalating challenges

    As demand for colocation data centers continues to swell, the role of a colocation provider has never been more important, but the challenges they face continue to intensify.

    To understand the future dynamics of the colocation market Schneider Electric partnered with 451 Research to survey 450 end user decision makers of colocation services in the United States, Australia, Europe and China across multiple geographies.

    Providers today are dealing with an ever-changing set of buyers, evolving customer demands and a growing list of emerging technology such as the Internet of Things (IoT), next-generation edge computing and cloud computing.

    Each of these categories pose both an opportunity and a threat to the colocation segment, and the survey results speak to how each is viewed by colocation end users in terms of adoption and importance.

    With 62% of those surveyed saying they have moved IT applications out from colocation data centers and into public cloud within the last two years, colocation providers must look to find ways to entice new and existing customers to consider colocation as a viable option for their businesses.

    “Whether they deliver the services themselves or via partners, successful colo providers are increasingly broadening their service offerings,” said Rhonda Ascierto, Research Director, 451 Research. “Our research identified several value-added services that align with colo customers’ changing needs.”

    It became clear throughout the research that there are many ways to gain and maintain competitive advantage amongst other hosting options. With 82% of respondents saying it was either very or somewhat important that cloud services are hosted in the same data center as their colocated IT infrastructure, colocation providers can turn what may seem like a threat to the segment into an opportunity.

    Many additional statistics within the report offer opportunities for providers to set themselves apart from their competitors.

    For instance, 65% of customers surveyed said they would be more willing to use a provider that had data center infrastructure management (DCIM) deployed. Other technologies such as lithium ion batteries, on-demand prefabricated modular (PFM) capacity, and direct cooling also resonated strongly with customers.

    Meanwhile, 82% of respondents said they were interested in using more remote-hands services from their colocation provider to track or monitor the work being done via an online portal. For providers, this presents an opportunity to either expand or introduce new services and open up revenue opportunities for their business.

    The most successful colocation operators will ensure all of these customer questions and requirements are addressed to ensure they are in a position to take advantage of the 64% of customers who said colocation will play a role in their data center strategy during the next two to three years.

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