By Paul Churchill, Vice President of Vertiv Asia
Philippines is fast emerging as a key hub for digital infrastructure in Southeast Asia, driven by a growing demand for digital services, and supported by government-backed renewable energy initiatives like the Green Energy Auction Program.
With massive investments pouring into cities such as Manila, Cebu, Davao, Batangas and Cavite, the country is poised for a data center boom.
Global and local players like PLDT, Globe, and Beeinfotech PH are accelerating hyperscale developments. Projects like the Narra Technology Park in Tarlac are set to triple the nation’s existing data center capacity, while newer entrants like ENDECGROUP have announced multi-billion-dollar investments to build massive 300-MW facilities. According to Leechiu Property Consultants, 1,364 MW of new capacity is in the pipeline, signaling the growing confidence investors have in the Philippines as a prime location for data center expansion.
Asia-Pacific’s Role in the Global Data Center Surge
As the Philippines experiences this rapid growth, it is not an isolated trend. The Asia-Pacific (APAC) region is rapidly emerging as a global leader in data center expansion, driven by the increasing adoption of artificial intelligence (AI), cloud computing, and digital transformation initiatives. APAC’s prominence in data center growth can be attributed to the region’s rapid digitalization, expanding internet user base, and supportive government policies. In fact, according to IDC, the installed data center power capacity in APAC is projected to grow at a compound annual growth rate of 14.2%, reaching 94.4 gigawatts by 2028. This surge underscores the region’s pivotal role in the digital economy.
However, this rapid growth presents significant challenges, particularly concerning environmental responsibility. Data centers are substantial consumers of energy, and their expansion amplifies concerns about power consumption and carbon emissions. The increasing demand for high-performance computing necessitates that data centers scale efficiently while implementing strategies to mitigate their environmental impact
The Sustainability Paradox: Growth versus Impact
As the world marks Earth Day 2025, attention is turning to industries with significant energy footprints. With expansion comes urgency and as APAC markets, such as China, India, and Singapore, push towards net-zero commitments, the data center industry must rethink its cooling and energy efficiency strategies to enable growth without exacerbating the existing climate challenges.
While energy consumption has long been a concern, water usage is now emerging as an equally critical issue. The Philippines, along with many of the region’s fastest-growing data center markets, such as Australia and Malaysia, are already grappling with water scarcity, making traditional cooling methods increasingly less optimal in the long term.
The way data centers are powered and cooled in the coming years will define the industry’s environmental footprint. As corporate responsibility expectations rise, companies must adopt more innovative and efficient cooling solutions to reduce energy consumption without compromising performance.
Rethinking Cooling: The Key to More Responsible Data Centers
With AI workloads driving unprecedented power densities, traditional air-cooling methods are reaching their limits. The industry must now embrace next-generation cooling solutions that improve efficiency while reducing environmental impact. Signaling the increased importance placed on new cooling solutions technology, liquid cooling is emerging as a leading solution as AI workloads exceed the capabilities of conventional air-cooled systems. ST Telemedia Global Data Centers Philippines unveiled the country’s first liquid cooling technology showroom, offering visitors a hands-on look at how these advanced systems can drive both energy efficiency and environmental responsibility.
In fact, Singapore’s first tropical data center testbed offers a glimpse into how operators can address cooling challenges unique to Asia’s climate. The use of energy-efficient technologies in this environment demonstrates the potential for alternative approaches that balance thermal management with environmental impact. As AI-driven workloads increase, such innovations will be critical to ensuring data centers remain both high-performing and environmentally responsible.
One solution gaining attention is direct-to-chip immersion cooling. These approaches significantly enhance thermal dissipation, reducing the energy required to keep processors at optimal operating temperature while improving performance. Industry leaders like Oxigen are already deploying liquid-cooled data centers, setting new efficiency benchmarks.
Beyond liquid cooling, other technologies are reshaping how the industry approaches responsible thermal management. Chilled water systems using low-GWP refrigerants are improving efficiency while minimizing environmental harm. Heat reuse and energy recycling are also gaining traction, repurposing excess heat for applications such as industrial processes, and domestic water heating. Meanwhile, hybrid cooling ecosystems—which combine renewable and conventional energy sources—offer operators a more flexible and resilient path to cooling optimization.
The Future of More Responsible Data Centers
As AI continues to drive data center expansion, the industry must prioritize long-term impact and rethink how facilities are designed and operated. AI-driven cooling systems are becoming smarter and more efficient. By adjusting in real time to changing workloads, they help reduce energy waste and improve overall performance.
At the same time, data center infrastructure is being reimagined for greater efficiency. According to reports, operators are increasingly adopting modular, prefabricated designs that allow for faster deployment, better energy performance, and a smaller environmental footprint. Many of these next-generation facilities are integrating heat recovery systems, low-emission cooling technologies, and resource management—ensuring that digital growth can scale responsibly.
Powering a More Responsible Digital Future
The choices made today will determine the long-term impact of data centers. As digital infrastructure continues to grow, businesses must act decisively to reduce their environmental footprint while meeting the increasing demands of AI and high-performance computing. By adopting next-generation cooling solutions, integrating AI-driven efficiencies, and embracing alternative energy, data centers can continue to scale without compromising environmental impact. The challenge is significant—but so is the opportunity to lead the global energy transition and ensure that scalability does not come at the cost of the planet.
