Middle Eastern tech giants eye PH for multibillion-dollar AI and data hubs

G42 and DAMAC Digital plan to invest billions, leveraging the Philippines’ strategic subsea cable routes and the newly completed national fiber backbone.

Several large technology companies from the Middle East are planning to make billions of pesos’ worth of investments in the Philippines due to its strategic location and the growing demand for artificial intelligence (AI) services.

Group 42 Holding Ltd. (G42), a company based in Abu Dhabi, said it is planning to invest as much as $500 million (around ₱29 billion) in a data center facility, according to the Department of Information and Communications Technology (DICT).

The infrastructure catalyst

One of the main reasons for G42 to invest in the Philippines is its strategic location and the near completion of the national fiber optic backbone project, which aims to provide faster and more reliable internet access nationwide.

The country also has subsea cables coming in from the north-south, northeast, and southwest routes, positioning the Philippines as a potential data center hub in Southeast Asia.

While the exact start of G42’s investment has not been disclosed, the DICT said the billions the company plans to invest will span three to five years. For now, the company prioritizes securing land with reliable water access, a crucial prerequisite for data center operations.

Leading role in regional expansion

DAMAC Digital, another company based in the United Arab Emirates (UAE), is also planning to invest in the Philippines to build what it says will be the country’s largest data center, with up to 250 megawatts of capacity.

DAMAC has committed more than $3 billion worth of investments in Southeast Asia in 2025, with the Philippines potentially taking a leading role in its regional expansion.

AI innovation has not only been reshaping industries but also economies, as transactions continue to move deeper into the digital space through e-commerce, e-wallets, and AI-driven development.

If these investments push through, this could mean more jobs for Filipino professionals, as well as a strengthening of the country’s technological industry and expertise, raising its ability to compete on the global stage.

 

 

If these investments push through, this could mean not just more jobs for Filipino professionals but also a boost to the country’s technological industry and expertise, positioning it to compete on the global stage.

 

 

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