ARTA says data centers critical to improving government services

THE Anti-Red Tape Authority (ARTA) said data centers will play a crucial role in supporting improvements to government services as well as the growth of the digital economy.

“We recognize that our digital economy is expanding and that the demand for data centers in the Philippines is growing rapidly,” ARTA Director General Ernesto V. Perez said at a forum on Monday.

He said however that the permit process is proving to be a challenge in setting up such centers.

“The development of data centers continues to face not just technical but systemic challenges in the permitting process that slows progress and increases costs,” Mr. Perez noted.

The Philippine digital economy is projected at between $70 billion and $140 billion in gross merchandise by 2030, according to a November report by Google, Temasek Holdings, and Bain & Co.

Mr. Perez cited the importance of data centers, communication towers, and fiber optic cables as the government seeks to digitalize public services.

He said Executive Order (EO) No. 32 will help address delays in expanding internet and mobile services.

The EO seeks to “institutionalize a set of streamlined guidelines for the issuance of permits, licenses, and certificates for the construction of telecommunications and Internet infrastructures to ensure the continuous development of the country’s digital infrastructure.”

The EO resulted in the reduction of the time to energize a telecommunications tower to 29 days, down 80.13%, Mr. Perez said.

The Philippine data center market was projected at $2.37 billion by 2031 from a base of about $850 million in 2026, according to Modor Intelligence, an Indian market research firm. — Beatriz Marie D. Cruz