Aboitiz InfraCapital

Home / Blogs / 7 sectors and industries that will benefit from better investments in data centers

7 sectors and industries that will benefit from better investments in data centers

Blogs

August 7, 2023

server room data center

The Philippines’ strategic location, skilled workforce, and supportive government policies have made it an attractive place for local and international data center investors. The immense role that data centers are set to play in the digital age has prompted infrastructure companies like Aboitiz InfraCapital to hasten the establishment of data center facilities and next-generation hyperscale campuses in the country in recent years. This is an opportunity that will allow the Philippines to secure its position as a crucial driver of digital transformation and a regional hub for data-driven businesses and industries. At the same time, the establishment of data centers also presents a lot of benefits to other sectors and industries in the country, including the following: 

E-commerce

The e-commerce sector in the Philippines has witnessed explosive growth that is driven by the increasing popularity of online shopping and digital marketplaces. Data centers play a crucial role in supporting this growth by providing the digital infrastructure needed to handle the surge in transactions and manage customer data securely. 

By making it possible for businesses to experience low latency and high availability, for example, data centers empower e-commerce platforms to deliver seamless shopping experiences. This, in turn, can contribute to reducing cart abandonment rates and enhancing customer loyalty. Furthermore, data-driven analytics enabled by data centers empower e-commerce businesses to gain valuable insights into customer preferences. These insights can serve as the foundation for targeted marketing campaigns and improving inventory management.

Healthcare

Data centers are vital for securely storing and processing sensitive patient information. Investing in data center services allows healthcare providers to enhance data security measures, ensuring compliance with data protection regulations in the country. 

The services offered by data centers can also have an impact on the quality of service that healthcare providers can offer. By centralizing medical data through data centers, healthcare facilities, and professionals can access comprehensive patient records, enabling more accurate diagnoses, personalized treatment plans, and improved patient outcomes. Moreover, data centers’ capabilities in handling large-scale medical research data can accelerate medical breakthroughs and facilitate collaborations among healthcare institutions and research organizations.

Government and Public Services

Data centers are fundamental to modernizing government operations and delivering efficient public services. Investing in data centers plays a key role in centralizing government data and making shared databases more accessible to various agencies, all while ensuring data security and integrity. This centralized data management approach enables seamless data sharing across departments, improving coordination and collaboration for better policymaking and public service delivery. For example, data centers can support digital citizen services, such as online permit applications, tax filing, and utility bill payments, simplifying administrative processes and enhancing public satisfaction.

Education and Research

student talking about knowledge

The education sector benefits from data center investment by enabling educational institutions to offer innovative online learning experiences and research opportunities. Data centers can host vast amounts of educational resources, making them easily accessible to students and educators alike. Meanwhile, through data-driven analytics, educational institutions can track student performance, identify learning trends, and personalize learning experiences for better academic outcomes. Additionally, data centers play a pivotal role in facilitating research collaborations and data-intensive projects across multiple disciplines, leading to scientific breakthroughs and advancements in various research fields.

Telecommunications

The telecommunications sector forms the backbone of modern communication and relies heavily on data centers for network infrastructure and data management. Increased data center investment can complement existing digital infrastructure projects like small cell sites and telecommunication towers in enhancing network reliability, reducing latency, and improving call quality for voice and video communications. 

As the Philippines embraces 5G technology and the Internet of Things (IoT) continues to expand, data centers become even more critical for managing the massive amounts of data generated by connected devices. Telecom companies can leverage data centers to optimize network performance as well as offer innovative services like smart city solutions and real-time data analytics.

Financial Services

The financial services sector relies heavily on data centers to manage massive volumes of financial transactions, ensure data security, and comply with strict regulatory requirements. The growing number of data centers in the country can help banks and financial institutions strengthen their cybersecurity measures and safeguard sensitive customer data from cyber threats and potential breaches. Additionally, the increased capacity for scalability that is afforded by data centers makes it possible for financial institutions to handle larger transaction volumes, especially during peak periods like tax seasons or shopping holidays. 

Data centers also play a crucial role in making advanced data analytics more accessible to financial institutions. This helps financial services providers gain real-time insights into market trends and customer behaviors, thus allowing them to make informed decisions and provide their clients with innovative financial services.

Emerging Technologies

AI technology microchip

The rapid growth of emerging technologies like Artificial Intelligence (AI) and Big Data analytics demands significant data processing capabilities. Data centers provide the necessary infrastructure to support these technologies so that they can be used to their full potential. AI applications require vast amounts of data for training and inference, which data centers can efficiently manage. For example, AI-powered chatbots can be implemented in customer service operations, providing instant support to users. Moreover, the integration of Big Data analytics with data centers allows businesses and organizations to gain deeper insights into their operations, customer behavior, and market trends, leading to data-driven decision-making and enhanced competitiveness.

By fostering an environment that encourages further data center investment, the Philippines can attract more investors, stimulate economic growth, and unlock the full potential of its thriving sectors. Embracing this digital evolution will not only ensure resilience and efficiency, but it will also position the country as a regional technology hub, empowering a brighter, data-enabled future for all.

More Blogs

Back to Top