The Market Monitor Minding the Nation's Business
By Rose de la Cruz
A landmark digital infrastructure is set to rise in Tarlac after the Bases Conversion and Development Authority (BCDA) signed an agreement with the provincial government to lease a 52-hectare land that would house a 300-megawatt hyperscale data center.
The data center, which will occupy 47 hectares of land space, will be built by Narra Technology Park Development, Inc. (NTPDI) to help the country meet its green technologies target and revolutionize its information technology capabilities.
The remaining five hectares of the leased property will depend on the LGU’s use priority, BCDA chair Delfin Lorenza told reporters at the sidelines of the lease agreement signing held at Solaire North on Tuesday.
NTPDI Managing Director William Johnson said investors saw the Philippines as an ideal location for the data center industry with its large industrial land parcels, growing availability of clean renewable energy (RE) sources, and supportive digital infrastructure strategy from the government.
Residing in the Philippines for 20 years now, Johnson said he is confident that the provincial government of Tarlac has adequate security measures to protect the $900 million investment for each of the three-phase development of the estate.
The idea of building a data center in Tarlac, he said, was conceived in response to the growing demand for data storage and processing. With the favorable conditions in the Philippines for data center development, the country is an attractive location for investments in this sector.
The Philippines has an estimated total operational capacity of 67MW for data centers.
NTPDI expects the hyperscale data center to be completed in 100 megawatts per phase. The company will offer the flexibility of being operated by a single off-taker, making it a unique addition to the country’s digital infrastructure landscape. It will also take charge of all roads, buildings, water, sewage, power, cabling, and basic communications infrastructure for all phases of development.
Johnson said New Clark City (NCC) was chosen as the site for the hyperscale data center because of the available large land parcels in the area to achieve the scale required for a project of this magnitude.
He added that NCC’s master-planned environment provides an ideal setting for a modern hyperscale data hub. Its proximity to Metro Manila, Johnson furthered, ensures the data center’s connectivity to the National Capital Region.
The project will likewise foster green economic growth in Tarlac. Throughout its three-phase construction, labor generation will be over 1,500 direct labor jobs to the local communities. Once operational, some 200 high-quality, skilled jobs in IT operations, maintenance, cybersecurity, and other areas will be generated.
The first phase of the hyperscale data center is expected to be operational by the fourth quarter of 2026.