Hyperscaler secures 50-year land lease in New Clark City

Narra Technology Park Development Inc. (NTPDI), the developer of the $2.7-billion hyperscale data center project in Central Luzon, signed a 50-year lease agreement with the Tarlac provincial government Tuesday, according to a report by Manila Standard.

NTPDI managing director William Jonson said the Philippines has strategic advantages in attracting data center investments.

“Our country boasts ample industrial land, a growing supply of clean renewable energy sources and a government actively promoting digital infrastructure. This, coupled with the surging demand for data storage and processing, makes the Philippines a prime location for data center development,” he said.

The planned facility is a 47-hectare complex housing a 300-megawatt hyperscale data center, the biggest in Central Luzon, and probably in the Philippines.

The company will undertake the project development within the New Clark City (NCC) in three phases, each with a 100-megawatt capacity and an investment of $890 million. An additional $35 million is allocated for site development.

Johnson said financing discussions are underway with multiple banks, with NTPDI planning a capital structure of 25-percent equity and 75-percent debt financing.

The data center complex is expected to generate 1,500 direct labor jobs and 200 high-skilled IT positions in areas like operations, maintenance and cybersecurity once operational.

Tarlac Governor Susan Yap cited the project’s potential for economic development, increased economic activity and job opportunities.

She reiterated the province’s commitment to sustainability, highlighting its alignment with NTPDI and the Bases Conversion Development Authority’s (BCDA) shared vision.

Johnson emphasized NTPDI’s commitment to clean and renewable energy, recognizing the significant power demands of hyperscale data centers.

“We’ve secured agreements to supply the project with 100 percent clean and renewable energy within five years of operation. This significant investment not only fuels the data center but also positions the Philippines as an attractive destination for major data users,” he said.

NTPDI expects to secure reliable power supply even before the first phase becomes operational in the fourth quarter of 2026.

The company’s long-term goal is for Narra Technology Park to achieve 100-percent reliance on clean and renewable energy within it’s the first five years of operation.

Narra Technology Park will offer the flexibility to be operated by a single off-taker, a unique value proposition in the Philippines’ digital infrastructure landscape.

Under the lease deal, Tarlac will keep 60 percent of the rental income, while the BCDA, which operates the New Clark City (NCC), will receive the remaining 40 percent.