Investment in data centres has soared in the country over the past two years, as new projects gain support from telecom companies, property groups, and global cloud providers. Market assessments for 2025 predict more than US$3 billion in active data centre construction, with expectations of adding over 124,000 rack spaces nationwide.
While Manila continues to be the main and dominant data centre hub, developers are also expanding into Batangas, Cebu, Laguna, and Cavite, the latter seen as a secondary growth cluster catching up with the capital, according to the Philippines Colocation Data Centre Portfolio Report.
This expansion will help these growing data centres secure land, connectivity, and increased access to major enterprise clients.
This shift is also reshaping the country’s power demand, considering that data centre operators generally require a responsive storage system with a steady power supply that allows for quick recovery during outages.
While the lack of a stable power source initially raised concerns about the country’s grid reliability, government officials have since reassured the public that these requirements are understood and that the country’s push toward renewable energy is aligned with such needs. To actualize this vision effectively, the Philippines has been seeking cooperation with fellow energy-conscious countries, including China.
Earlier this year, the Department of Energy (DOE) sought the expertise of China’s State Grid Corporation (SGCC) in deploying battery storage systems to bolster the Philippines’ transmission network. The Chinese corporation was slated to help the National Grid Corporation of the Philippines (NGCP) broaden its mapping of storage needs across the transmission network, assisting in addressing these requirements over the long term.
This bilateral cooperation has laid the groundwork for the Philippines to attract more Chinese energy companies looking to deepen their engagements across Southeast Asia, including firms with well-established regional experience such as Xiamen Hithium Energy Storage Technology Co. Ltd.
Indeed, the road to reliable energy storage systems is not an easy one, even for established actors, nor is the task of ensuring credible capital market access for such firms. Hithium, which has thus far failed in its attempt at an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX) this year, recently refiled its A1 application. Although Hithium is among the biggest battery energy storage manufacturers in Asia, investor confidence has waned significantly in light of challenges being faced, including a heavy reliance on subsidies from Beijing.
Ongoing IPO delays and setbacks reflect broader regulatory and market headwinds across Asia that are hindering development opportunities. They also highlight the growing challenge faced by HKEX as it balances its ambition and the need to properly scrutinise new listings so as to remain Asia’s premier fundraising hub.
With rising data centre demand, ongoing construction, and the need for increased integration of renewable energy, the Philippines remains a key market that regional storage suppliers continue to monitor—not least Chinese firms seeking more robust exposure across the continent.