Manila data centre pipeline shrinks 13% in H1 2026 as new projects lag
Manila's data centre development pipeline contracted by 13% in the first half of 2026, falling to 97 megawatts, as new project announcements failed to keep pace with recently completed capacity. Operational IT capacity expanded 22% to 90 MW, while vacancy improved to 43.6% from 48% in the previous h
MANILA’S data centre development pipeline contracted by 13% in the first half of 2026 as new project announcements failed to replenish recently completed capacity, bucking a sharp expansion in data centre development across Asia-Pacific, according to Cushman & Wakefield.
Manila’s development pipeline fell to 97 megawatts (MW), comprising 5 MW under construction and 92 MW in the planning stage, the real estate consultancy said in its Asia Pacific Data Centre H1 2026 Update. Capacity under construction dropped to 5 MW from 22 MW, largely as projects reached completion, while planned capacity edged up to 92 MW. Cushman & Wakefield said the decline indicated that new project announcements had yet to fully replace recently delivered supply.
Operational information technology capacity, meanwhile, expanded by 22% to 90 MW as new facilities entered service, bringing Manila’s operational network to 28 data centres run by 16 operators. Despite the additional supply, Manila’s colocation vacancy rate improved to 43.6% from 48% in the previous half, suggesting that demand absorbed part of the newly delivered capacity.
The consultancy, however, noted that Manila continued to have significant available capacity relative to other regional markets. At 43.6%, Manila also had the highest colocation vacancy rate among the 15 primary and secondary Asia-Pacific markets individually profiled in the report. Among the other secondary markets, Ho Chi Minh City posted a vacancy rate of 34.8%, followed by Perth at 34.3%, Delhi National Capital Region at 10.9%, Auckland at 6.4%, and Taipei at 5.6%. Vacancy rates among the primary markets were also lower, ranging from 0.7% in Johor to 22.1% in Bangkok, according to the report.
The contraction in Manila’s pipeline contrasted with the broader Asia-Pacific market, where developers added 7,103 MW to the development pipeline during the first half, lifting the regional total to 26,455 MW. Of this, 4,764 MW was under construction and 21,691 MW was in the planning stage. About 1,372 MW of new operational capacity also came online across the region during the period, while vacancy slipped to 10.3% from 10.9% in the second half of 2025 as demand continued to absorb new supply.
Cushman & Wakefield said artificial intelligence (AI) and cloud investment across Asia-Pacific had entered a period of rapid but power-constrained execution, with electricity availability becoming a key bottleneck for the industry. It said new capacity was increasingly shifting away from saturated hubs toward peripheral areas and new locations, while investors favoured larger projects with clear AI-driven demand and the capacity to support hyperscale operations.
Manila remained classified as an “emerging” data centre market, alongside Pune, Batam, Taipei City, Auckland, Perth, Bengaluru, Canberra, Busan, Ho Chi Minh City, Hanoi, and Brisbane. Emerging markets collectively accounted for 7% of Asia-Pacific’s operational data centre capacity, while their cumulative vacancy rate declined to 18% in the first half from 26% in the previous six months. In the Philippines, the consultancy cited investments in AI, financing, and power infrastructure as factors supporting the sector’s longer-term growth. It noted the launch of the National Artificial Intelligence Center for Research and Innovation to support AI research, advanced computing, and industry collaboration. Cushman & Wakefield also cited the International Finance Corp.’s US$170-million commitment to the Philippine data centre sector and the commissioning by Converge Information and Communications Technology Solutions, Inc. of a 12-MW data centre near Manila.
