As Southeast Asia draws billions in investments from hyperscalers and tech giants, the time is now for the Philippines to build mission-critical digital infrastructure and unlock massive economic gains.
Beep, beep!
As Metro Manila gears up for the much-needed EDSA highway rebuild, there is another kind of infrastructure equally vital to the country's future: mission-critical digital infrastructure.
EDSA -- once a proud symbol of national progress, an iconic artery that connected millions and stood for modernity, mobility, and ambition -- today reflects the everyday realities of daily frustration, stalled momentum, and lost economic potential, clearly in need of a full-scale rebuild to better serve the lives of Filipinos. If plans to rebuild moves forward, it presents a rare opportunity to reimagine EDSA – not just as a road but as a symbol of national reinvention, resurgence and readiness for the future.
In the same way, the country must now invest in the digital highways of the future -- cloud, data centers, fiber, and AI infrastructure. Across Southeast Asia, tech giants like Amazon Web Services (AWS), ByteDance, Google, META, Microsoft, NVIDIA, and Oracle are pouring billions into data centers that house, connect and power cloud and AI facilities and these investments are transforming the economies of our neighboring countries, Singapore, Indonesia, Malaysia and Thailand, and positioning these countries as digital powerhouses in Asia.
The Philippines cannot afford to be bystanders anymore. Why? Because, a combined $20B data center investment by these hyperscalers could unlock $100B economic impact – fueling direct and indirect jobs, industries, and global relevance.The Philippines need to act quickly and capture this once-in-a-generation opportunity if it wants to unlock multi-generational prosperity.
The Hyperscaler Investment Boom Across Southeast Asia
Seven of the world’s tech giants -- Amazon Web Services (AWS), ByteDance, Google, META, Microsoft, NVIDIA and Oracle -- have already invested billions in Southeast Asia's digital backbone over the last few years. Some of their massive commitments to the region include:
In Singapore, AWS announced in 2024 it is investing an additional US$9B through 2028, contributing $17.6B to GDP, supporting 12,000 jobs annually. Google added $5B (2024) in new investments for their 4th data center. Oracle has also invested in data centers in Singapore, the most recent of which is the isolated cloud and AI infrastructure for the defense ministry (investment amounts undisclosed). META unveiled in 2018 a $1B renewable-powered data center—its first in Asia—enhancing the city-state’s role as a regional digital hub, where ICT already contributes approximately 13% to GDP. These investments add to national GDP and digital capacity, and support the country’s growing ambitions to become a regional data center hub. Singapore currently has more than 70 operational data centers (99 planned) with a capacity of 1.4 gigawatts – already one of the biggest hubs in the world. Note META also launched the Echo and Bifrost subsea cables connecting Singapore and Indonesia to the U.S., and through these regional infrastructure projects, estimates a US $500B uplift to Asia-Pacific GDP by 2025.
In Malaysia, AWS committed $6.2B (2023), reporting to add 3,500 direct jobs and $12.1B to the country’s GDP through 2038. Microsoft invested $2.2B (2024) for 3 data centers to go live mid-2025 which would generate $10.9B in new revenues together with its partners and cloud customers, and create 37,500 jobs by 2028. Google pledged $2B (2024) for its first data center and Google Cloud region, creating 26,500 jobs. Oracle announced plans to invest $6.5B (2024) to set up its first public cloud region. NVIDIA’s $4.3B investment with YTL in Malaysia to build AI supercomputers is set to accelerate the country’s shift to a high-income, AI-driven economy, contributing to the ICT sector’s 22.6% share of GDP and unlocking up to US $113B in value.
In Indonesia, AWS invested $5B to launch its Jakarta region (2021) which they report will add more than $10.9B to the country’s GDP over 15 years. Microsoft committed US$1.7B (2024) which will create a GDP uplift of $2.5B. Googlelaunched its first hyperscaler cloud region in Jakarta in 2020 comprising of multiple data centers, reported an uplift of approximately $55B to the economy, and supported 92,000 jobs annually. This 2025, Google expanded its Jakarta region and expects to add $88B into the economy through 2030 and support 240,000 jobs annually.
In Thailand, AWS announced over $5B (2022) investment to build a new Bangkok cloud region which has gone live this 2025, will add $10B to the economy and create over 11,000 jobs annually. Microsoft announced it will open a new regional data center (2024) as part of a broader $1.7B investment in Thailand and Indonesia. Google announced a $1B(2024) investment to build a new data center to expand its cloud infrastructure, will create 14,090 jobs annually, and will contribute up to $4B to Thailand’s GDP by 2029. Note Google has supported $5.3B in economic activity in 2023 and helped sustain 184,100 jobs. ByteDance secured Thai Board of Investment approval for an equivalent ~US $3.76B in data hosting services and pledged an additional $8.8B over five years, aligning with Thailand's goal for digital industries to comprise 25% of GDP by 2027.
In the Philippines, nada. And it’s about time.
Are you seeing the drift?
These investments are part of a global trend -- tech giants are racing to expand their cloud, AI, and data capabilities, and Southeast Asia has become a prime destination.
The only major ASEAN player not yet reaping the benefits of this boom? The Philippines.
What’s in it for the Philippines?
Imagine this – if say, five hyperscalers each committed just $2B each, totalling $10B, and were matched by an equivalent $10B in supporting physical infrastructure for hyperscalers (like land, power, fiber, and data centers), the result would be $20B in capital investments – a highly conservative estimate in light of explosion of data, video traffic, and AI compute demands reshaping the internet in this new era. Based on current global trends and ROI studies, this could translate to at least $100B in cumulative economic impact over the next few years.
The 1:5 Economic Multiplier of Digital Infrastructure for the Philippines
Google-backed studies with Deloitte have shown that every $1 spent on cloud technologies can generate up to $6.60 in economic impact through gains in productivity, innovation, and cost efficiency. Microsoft and IDC estimate a 3x to 7x return from digital transformation across Asia Pacific, particularly in areas like financial services, education, and supply chain. AWS, in studies with Oxford Economics, has demonstrated 4x to 6x multiplier effects tied to data center and cloud investments, creating thousands of jobs and boosting local GDP. McKinsey projects that digital technology could add up to $1 trillion to Southeast Asia’s GDP by 2025, with 3x to 6x returns especially in high-potential sectors like agriculture, retail, and public services. Accenture reports 2x to 5x economic gains from public-sector cloud adoption, while World Bank and ITU research link broadband expansion to GDP growth consistent with 4x to 6x returns.
Anchoring on these findings, we apply a 1:5 ratio for the Philippines—a realistic and conservative midpoint—reflecting its status as a rapidly digitizing economy with high potential for technology-driven growth but still building the infrastructure and policy foundation to fully realize upper-range multipliers. Looking ahead to 2030, the multiplier effect could realistically grow to 1:7 or more (1:5 is the norm in the last 5 years, up to 1:10 in the next 5 years) as cloud and AI use accelerate and deepen across industries.
What Does the Economic Impact Look Like?
Hyperscaler investments in the Philippines promise transformative economic and social returns. Direct impacts include the creation of tens of thousands of jobs across design, engineering, construction, data center operations, and IT services. Indirectly, these investments stimulate growth in supporting sectors—such as local IT service providers, utilities (power, water, telecom), and construction supply chains. The induced impact is also substantial: as newly employed professionals increase their spending, sectors like housing, retail, and transportation experience meaningful economic uplift.
On a national scale, hyperscaler infrastructure strengthens the country’s digital sovereignty by enabling sovereign cloud solutions that keep sensitive government and citizen data within Philippine borders—critical for privacy, regulatory compliance, and national security. The country’s cybersecurity posture also improves, as global cloud providers deliver advanced security architecture and threat intelligence far beyond what individual organizations can typically build and afford.
Moreover, hyperscalers invest in AI readiness and digital skills training, helping to cultivate a future-ready workforce and fueling innovation across startups and enterprises. In the long term, these foundational investments position the Philippines as a regional digital hub—attracting further foreign direct investment, accelerating digital transformation across industries, and driving inclusive, sustainable economic growth.
Data Center Pulling Power
Take for example this late-breaking news -- AWS just recently announced a A$20B (US$13B) investment for 2025–2029 in Melbourne and across Australia – including 170MW from 11 solar /wind farms, following an earlier A$13.2B (US$8.6B) investment from 2023–2027 in Sydney—together projected to boost Australia’s GDP by over A$50B (US$33B) and drive large-scale job creation, clean energy generation and AI-led economic growth. This exemplifies the significant pulling power that data center investments have in driving economic growth and innovation in any country.
Laying the Groundwork for the Philippines to Attract Hyperscaler Investment
The Philippines is making strides toward becoming a competitive destination for hyperscaler investments, with several foundational elements already in place and others actively being developed. Efforts to streamline permitting are underway through initiatives aimed at establishing a centralized one-stop shop, while fiscal and non-fiscal incentives continue to improve to attract long-term investors. Progress is also being made in expanding access to clean, stable, and scalable energy sources to meet the sustainability requirements of global tech firms. On the infrastructure front, ongoing enhancements to domestic fiber networks and international connectivity—through new undersea cable projects—are significantly strengthening the country’s digital backbone. Regulatory reforms on data privacy, cross-border data flows, and cybersecurity are being aligned with global standards, signaling strong intent to create a trusted digital environment. Meanwhile, the private sector has begun building green-ready digital campuses, forming strategic alliances with telcos and real estate developers, and partnering with academic institutions to upskill the digital workforce. These developments, taken together, are laying the groundwork for the Philippines to attract and sustain large-scale, future-ready hyperscaler investments.
A New Highway of Progress
Rebuilding EDSA is a chance to renew more than just a road—it’s a chance to redefine progress. Physical infrastructure will ease traffic, but digital infrastructure right here in the Philippines will drive innovation, inclusion, and long-term growth.
The Philippines is ready.
It’s about time.
Beep, beep!
References:
1. Google & Deloitte – Economic Impact of Cloud Adoption, various country-level studies (e.g., Singapore, India): up to 6.6x ROI. 2. IDC & Microsoft – Unlocking the Economic Impact of Digital Transformation in Asia Pacific (2020): 3x–7x ROI. 3. AWS & Oxford Economics – Economic Impact of AWS Data Centers (Australia, India, Indonesia): 4x–6x ROI. 4. McKinsey & Company – Unlocking Digital Value in Southeast Asia (2019), Cloud’s Trillion-Dollar Prize (2021): 3x–6x ROI. 5. Accenture – Cloud Imperative for the Public Sector (Global): 2x–5x ROI. 6. World Bank & ITU – The Economic Impact of Broadband on Growth (global): broadband-driven GDP growth aligned with ~4x–6x returns.
Follow us on
