Narra Technology to invest $2.7B for hyperscale data center in Tarlac

The Narra Technology Park Development Inc. (NTPDI) will invest some $2.7 billion for a 300-megawatt hyperscale data center in New Clark City (NCC) in Tarlac, set to be the first of its kind in the country.

According to NTPDI managing director William Johnson, the data center will be made in three phases of 100 megawatts, set to cost around $890 million each, and some $35 million for the site development.

In a briefing in Quezon City, Johnson said the first phase is set to be fully operational by the fourth quarter of 2026, but this will be determined by a number of factors. Each phase is set to start less than a year after the other, as indicated in the original business plan.

The hyperscale data center will be part of the Narra Technology Park, a 47-hectare facility in New Clark City that will be operated by a single offtaker.

“We selected NCC in Tarlac due to several factors. Firstly, the availability of large land parcels in the area allowed us to achieve the scale required for a project of this magnitude, a challenge in the land-constrained areas of Metro Manila,” Johnson said.

“Secondly, NCC’s master-planned environment provided an ideal setting for the development of a modern hyperscale data center hub,” he added, noting the NCC's proximity to Metro Manila and the Clark Freeport Zone.

The project is expected to generate over 1,500 direct labor jobs for local communities and create some 200 high-quality skilled jobs in information technology operations, maintenance, cybersecurity, and other areas once operational.

It is targeted to be powered by 100% clean renewable energy within the first five years of operations, which will be new power coming into the grid, as Johnson said the project will not take any of the existing supply available.

NTPDI on Monday inked a 50-year lease contract with the Provincial Government of Tarlac for the project, with a possible extension of 25 years. Groundbreaking was scheduled for August.

The Tarlac local government will have a 60-40 profit sharing agreement with the Bases Conversion and Development Authority (BCDA), which is the property owner of New Clark City, situated inside the Clark Special Economic Zone.

“The Philippines is an ideal location for the data center industry due to its large industrial land parcels, growing availability of clean renewable energy sources, and supportive digital infrastructure strategy from the Philippine Government,” Johnson said.

“The idea was born in response to the growing demand for data storage and processing, and the Philippines’ favorable conditions for data center development make it an attractive location for investment in this sector,” he added. —VBL, GMA Integrated News