The Philippines has no single data centre law, so projects rely on general investment, power and privacy rules. Data centres sit in the top tier of the 2026 Strategic Investment Priority Plan, and a July 2026 executive order now requires secret government data to stay in the country. Power remains the main constraint, after Luzon grid red alerts and rotating outages in May 2026.
Grid power for a large industrial user in the Philippines costs about US$0.12 per kWh as of July 2026, the country figure ArusGrid applies where a site has no published rate. The US export control position for advanced AI chips in the Philippines, as of 27 September 2026, is recorded as “No US destination-based licence requirement as enforced”.
Approvals and licensing · Power · Incentives · Data rules · Water and cooling · On the clock · 10 projects in Philippines
The Konektadong Pinoy Act (Republic Act 12234) lets data transmission providers build and run networks without a franchise from Congress. They register with the National Telecommunications Commission instead. The law does not name data centres, so its reach over pure data centre operators is unclear.
DICT and six other agencies signed the implementing rules for the Konektadong Pinoy Act. The rules took effect after posting in the Official Gazette on 1 December 2025. Providers must hold an international cybersecurity certification within two years under the law.
Executive Order 18 of 2023 created green lanes at the Board of Investments (BOI). A green lane certificate fast tracks permits and licences from national agencies and local governments for strategic investments.
The BOI granted green lane status to the Converge ICT data centre in Angeles City, Pampanga, on 27 August 2026. The site cost nearly PHP 5 billion and started at 3 MW with room to grow to 36 MW.
The 2022 amendment to the Public Service Act (Republic Act 11659) limits the 40% foreign ownership cap to a short list of public utilities such as power distribution, transmission and water pipelines. Data centres are absent from that list. Foreign control of critical infrastructure above 50% needs reciprocity from the investor's home country.
The government exempted new IT parks in Metro Manila from a moratorium on new economic zones. This lets the Philippine Economic Zone Authority (PEZA) again accept IT park applications in the capital, and five parks applied soon after.
Since 26 June 2026, users with demand of at least 100 kW can buy power from a licensed retail supplier under Retail Competition and Open Access (RCOA). The threshold was 500 kW before. Smaller users can pool demand to qualify under the Retail Aggregation Program.
The Department of Energy (DOE) cut the Green Energy Option Program threshold from 100 kW to 50 kW. The program lets users contract renewable power directly from a supplier. Users in the same franchise area can now pool demand with no group size limit.
Meralco's residential rate was PHP 14.7424 per kWh in September 2026. It was PHP 14.8261 in July and PHP 14.7833 in August. Meralco is the utility serving Metro Manila and nearby provinces.
The Luzon and Visayas grids went on red alert on 14 May 2026 after two 500 kV lines tripped. Luzon was short 413 MW, and Meralco cut power to over 200,000 customers for about three hours.
President Marcos signed a fresh 25 year franchise for Meralco on 11 April 2025. Areas outside Meralco use other utilities. Clark Electric is the sole distributor in the Clark Special Economic Zone in Pampanga and Tarlac.
No published DOE or ERC rule targets data centres. The ERC had not studied data centre impact on the power sector as of January 2026. The DOE estimates 300 to 1,500 MW of extra peak demand from data centres, pending validation.
The CREATE MORE Act (Republic Act 12066) was approved on 8 November 2024. Registered firms under its enhanced deductions regime pay 20% corporate income tax. They can also deduct power costs for registered activities a second time in full.
Under CREATE MORE, local governments may charge registered firms a local tax of up to 2% of gross income. This replaces all other local taxes, fees and charges.
The 2026 Strategic Investment Priority Plan places data centre facilities in Tier III, its highest tier, with cybersecurity and artificial intelligence. The President approved it through Memorandum Order 47, signed on 21 May 2026.
Registered firms get VAT exemption on imports and zero rated local purchases only if export sales reach at least 70% of output. Data centres serving mainly local clients may not meet this test.
The Data Privacy Act of 2012 does not require personal data to stay in the country. A company that sends data abroad for processing stays responsible for it. It must use contracts or other means to give comparable protection.
The National Privacy Commission (NPC) issued model contract clauses for cross border transfers in May 2024. Use is voluntary, and the NPC will not review contracts for conformity.
Executive Order 119, signed in mid July 2026, requires Top Secret and Secret government data to stay in Philippine territory. Confidential data generally stays local unless a joint committee approves offshore processing. Lower classes may use secure cloud platforms, and the order does not cover private sector data.
Agencies must finish data inventories in year one and fully comply for Top Secret and Secret data by year two. All government data must comply by year three.
DICT's Cloud First Policy pushes government agencies to use cloud services. A 2020 amendment set four classes of government data and stated that Philippine law applies to government data with local links.
Bangko Sentral ng Pilipinas (BSP) Circular 1137 of 2022 makes banks classify outsourcing as material or non material. Banks stay responsible for checking providers' security and must assess data access risks from provider staff.
Under the Water Code of 1976, no one may draw water without a water permit. The National Water Resources Board (NWRB) now issues these permits, including for groundwater and industrial use.
The NWRB cut Angat Dam water for Metro Manila from 50 to 53 cubic metres per second to 44 for October 2026. It acted ahead of a strong El Niño. Angat supplies most of the capital's water.
No national rule sets water or cooling limits for data centres. Engineering firm Black & Veatch said in May 2026 that operators need certainty on both power and water supply.
A joint committee led by DICT and the National Security Council must issue implementing guidelines within 120 days of the order taking effect. That points to around November 2026.
Energy Secretary Sharon Garin said the DOE would release a data centre energisation policy in 2026. No published policy was found as of 3 October 2026.
House Bill 2781, filed on 31 July 2025, would turn the green lane scheme into law. It sets 3, 7 and 20 working day deadlines and automatic approval if agencies miss them.
The ERC plans to publish a roadmap for phased expansion of retail choice programs. The stated end goal is to let households choose their supplier.
DICT Secretary Henry Aguda set a goal of 18 GW of data centre capacity over ten years, with 1.5 GW by end 2027. The government is also studying turning the Bataan Nuclear Power Plant into a data centre site.
Investment bankers have urged a broad data residency law covering private data. They say it would support data centre demand and future listings.
What this research looked for and could not confirm from a primary or credible source. Listed so the gaps are visible.
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