Philippines-based Globe Telecom’s participation in the Candle Cable system will significantly boost the Philippines’ international connectivity, supporting regional ambitions for digital hub status through enhanced digital infrastructure resilience and high-speed, low- latency networks across the Asia Pacific region, BMI Country Risk and Industry Research said Tuesday.
Robust growth in the Philippines’ cloud and data center markets, combined with government-backed digital transformation initiatives, positions the country as an emerging digital hub amid rising technology demand, the research house said in a note.
It opined that the Candle Cable project, alongside broader subsea cable investments, will underpin the Philippines’ digital backbone catering to rising international data traffic from artificial intelligence (AI), cloud, and 5G uptake despite potential cost rises linked to geopolitical risks as investors prioritize resilient and diversified infrastructure.
It is noted that the global subsea cable market size is estimated to have reached $5.1 billion in 2025, reflecting a year on year growth of 108 percent, primarily driven by the decommissioning of ageing cable systems increasing production of new cable systems and surging global data flows for cloud computing and AI workloads.
In 2026, submarine cable project costs are likely to rise due to the fallout from the Iran, Israel and US conflict, yet investors are expected to continue increasing investments in subsea cable infrastructure and landing stations, focusing on diversified routes and resilient systems to mitigate risks and accommodate growing demand.
Globe Telecom has earlier announced plans to join the Candle Cable system consortium, a strategic move that will see the operator participate in the development of an 8,000km subsea cable spanning the Asia Pacific region.
The Candle Cable system will directly link the Philippines with key regional markets including Taiwan, Japan, Malaysia, Indonesia and Singapore, strengthening digital infrastructure resilience and enabling high-speed, low-latency connectivity to support the region’s digital hub ambitions.
The Candle Cable system was announced in late-2025, in collaboration with regional telcos and hyperscalers including SoftBank, Meta, IPS, XLSmart and others to develop a new international submarine cable system which would connect the South East Asia (SEA) region.
Globe Telecom has joined the consortium as both an investor and cable landing station partner, with the cable set to connect to Globe’s Nasugbu landing station in the Philippines and targeted for operational launch in 2028.
Globe will gain access to high-speed, low-latency international links, improving service quality and supporting growing enterprise demand for data and cloud services driving revenue growth for its business segment.
This project also aligns with government initiatives that aim to accelerate digital transformation and implement a cloud-first strategy.
It is noted that the Philippines scores 59 on the BMI Digital Readiness Risk Index for 2026, lagging behind its regional peers in Asia Pacific.
However, robust technology demand, increased investment, supportive government policies and favorable geographical positioning are strengthening the country’s prospects as an emerging digital hub, said BMI.
According to the research house, the cloud market is projected to expand from $1.8 billion in 2025 to $9.1 billion in 2031, representing a compound annual growth rate (CAGR) of 30.5 percent whilst data center live capacity is anticipated to rise from 135.6MW in 2024 to 258.6MW in 2029.
These trends underscore the growing need for high-capacity, low-latency connectivity and ongoing improvements in digital infrastructure through fiber, subsea cable infrastructure and 5G rollout.