Philippine property developers are expanding their recurring-income portfolios through offices, hotels, mixed-use projects, and data centers, despite the latter’s significant land, energy, and infrastructure requirements, according to real estate consultancy Santos Knight Frank. The firm was cited in a report by BusinessWorld.
Rick Santos, chief executive officer of Santos Knight Frank, described data centers as a significant but challenging growth area. “I think the demand is there, but the requirements for land, power, and connectivity are very high,” he said.
Despite the hurdles, developers continue to explore data center projects as part of a broader shift toward recurring income streams, which provide stable cash flows compared to traditional for-sale residential developments.