Philippines is attracting new hyperscaler data center investment.

The Philippines may announce a new hyperscaler investment as early as next year, according to the Department of Information and Communications Technology (DICT), as the government ramps up efforts to improve power access, enhance connectivity and craft more attractive policies for global data center operators. Speaking on the sidelines of the 2025 Singapore FinTech Festival, DICT Secretary Henry Rhoel Aguda noted that hyperscalers have begun reassessing the Philippines as a viable location. "Connectivity will be fixed by next year," he said. "We convinced them that if they choose the right location, their power will be cheaper."

A hyperscaler is a large technology company that builds and operates massive data centers capable of supporting cloud computing, artificial intelligence and high-volume digital services. The DICT has set an ambitious target to raise data center capacity to at least one gigawatt, a scale comparable to Singapore, up from the current domestic capacity of only 200 megawatts. "From 200 megawatts, our capacity should exceed one gigawatt. So, five times more," Aguda said. He emphasized that expanding hyperscaler presence is essential as the region accelerates developments in artificial intelligence. "If we're going to push AI in ASEAN, we really need hyperscalers."

Aguda said he has already held discussions with several major players in the sector. "I already talked with Google, Microsoft and Amazon Web Services (AWS)," he said, noting that firms are still assessing timing and capacity plans. "They're studying it. I already explained to them that connectivity is now okay and power is now okay. That's how it is, you really have to court them for investment. It's moving forward. Maybe by next year, we'll have one." He expressed confidence in upcoming announcements, stating "I'm confident that next year, somebody's going to step up." Aguda noted that competition among firms could work to the country's benefit: "Once one (hyperscaler) comes in, the rest will follow."

Beyond hyperscaler recruitment, Aguda said the DICT is working with the private sector and foreign governments to support broader digital and AI initiatives. He indicated he had a scheduled meeting with Microsoft "to see what it will take for them to bring their AI in the Philippines in hyperscaler." The DICT is also in talks with lending platform JuanHand to develop financial products tailored for gig workers, especially motorcycle delivery riders and motorcycle taxi drivers, and is coordinating with the Singaporean government, saying "We want to be partners with them in crafting AI policy across the region."

On digital finance and blockchain adoption, Aguda addressed the Bangko Sentral ng Pilipinas (BSP)'s Project Agila pilot, which could pave the way for a central bank-backed stablecoin. "The central bank-backed stablecoin will be the digital peso," he said, noting that privately issued stablecoins will serve different functions and "complement one another. They shouldn't be competing." He suggested stablecoins may eventually support government payments and aid distribution, noting "Once you have a stablecoin, you can't just track who the recipient is. You can also track what they are spending." The DICT is also preparing a proof of concept to place the 2026 national budget on blockchain, with lawmakers having already convened two to three technical working groups on the blockchain budget initiative.