As a planned large AI computing deployment takes shape in the Philippines, questions remain about customer demand, power supplies, local workforce development and the economics of sovereign compute.
In this TNGlobal Q&A, Nicholas Chia, CEO of Aolani, and Nikolas de Ynchausti, CEO of YCO Cloud, discuss the planned NVIDIA Blackwell Ultra cluster and the milestones before its targeted first-phase rollout in the first quarter of 2027.
What demand assumptions underpin the decision to deploy more than 10,000 NVIDIA Blackwell Ultra GPUs in the Philippines, and which customer segments do you expect to account for the earliest utilization?
Nicholas Chia: The demand for AI globally and within Southeast Asia is accelerating rapidly. The first, and still ongoing, wave of AI compute demand is driven by hyperscalers and tech giants training state-of-the-art models. Now we also see the emergence of a new host of AI applications requiring real-time inference, from coding agents, to personal assistants, to video and voice, to physical AI and robotics. In addition, local sovereign and enterprise use cases specific to each country’s economy and needs are also being developed, from fraud detection to climate modelling to citizen services.
This is creating broad-based strong global demand for high-performance compute from AI-native startups, enterprises and sovereign institutions alike.
Against this backdrop, Southeast Asia is fast becoming a key linchpin for global AI infrastructure, and the Philippines is emerging as an exciting and dynamic new market for digital infrastructure growth.
We expect customer segments to come from all avenues for the Philippines cluster. Firstly, the cluster will be well-suited to serve global tech companies and startups with the Philippines’ subsea cable infrastructure which provides robust global connectivity. Secondly, there is also strong and growing local demand in the Philippines from enterprises and startups that need access to AI compute, government bodies advancing the national AI agenda, as well as the country’s large outsourcing and business services sector, as it moves towards AI-enabled services.
Based on this, YCO and Aolani combined saw the opportunity to build foundational infrastructure for the Philippines’ AI ambitions. Ultimately, our goal is not just to bring compute into the country, but to catalyse an AI ecosystem that creates opportunities and strengthens the Philippines’ connection to the global AI economy.
For local enterprises and startups, what still needs to change before access to this level of compute becomes economically useful rather than simply available?
Nicholas Chia: Infrastructure is a critical first step, but compute will only become economically useful when local enterprises and startups can access it in a way that fits their stage and needs. That requires us to ensure flexible, right-sized access with managed services and tools that let teams build AI capabilities as the nation’s ecosystem matures. That is what our partnership with YCO aims to help catalyse.
The real opportunity comes when businesses are supported by a broader ecosystem that brings together enablers like infrastructure providers, developers, policymakers, universities and research institutions. Talent is a big part of this, and businesses also need management leaders who understand and lean into the AI opportunity, technology leaders who can develop clear use cases and roadmaps that justify the investment, engineering talent who can build on this infrastructure, and operations leaders who can embed it into the company.
Building this ecosystem takes sustained collaboration between infrastructure providers, government, universities and industry. YCO and Aolani intend to play an active role.
The project has been positioned as sovereign AI infrastructure. In practical terms, what does sovereignty mean here across data residency, control, security, procurement and operations?
Nicholas Chia: For Aolani, sovereign AI fundamentally entails ensuring that countries have access to the compute infrastructure required to innovate and grow in the AI era. In practical terms, this infrastructure is designed in line with local data protection requirements so that data can be stored and processed within the Philippines. Our customers retain control over their data and workloads supported by our robust, enterprise-grade security and compliance.
Just as importantly, sovereignty is about local partnership and capability. Working closely with YCO, we are building infrastructure that is operated with local expertise and aligned with the needs of the local government and business environments, including their compliance and security requirements, to ensure that the benefits of AI are created and realised within the Philippines.
How are power availability, renewable-energy sourcing, water use and network connectivity shaping the design and phasing of the deployment?
Nikolas de Ynchausti: From the earliest planning phases, sustainability and environmental impact are central considerations. The location where we put our data center should already provide sustainable access to renewable energy, water, connectivity and land. YCO Cloud’s partnership with SPPI, one of the largest developers of industrial parks in the country, gives us priority access to their purpose-built estate designed and equipped to support sustainable digital infrastructure. Our data center uses air cooled technology that doesn’t use as much water and we choose to recycle water for least impact to the environment. Our operations strictly rely on 100% renewable energy sources – including solar, solar integrated with battery storage, geothermal and wind. By working with power generation partners, we’re able to bring new renewable capacity online. On the connectivity side, our data centers are strategically located near fiber pathways and submarine cable landing stations ensuring lower latency and accelerated data transmission.
AI infrastructure projects globally are facing questions around utilization, financing and return on capital. How are YCO and Aolani thinking about those risks in the Philippine market?
Nicholas Chia: At Aolani, we take a disciplined approach that starts with evaluating real market demand and building infrastructure that scales alongside customer needs. We embarked on the project with YCO with confidence in underlying strong structural drivers including the democratisation of AI demand to come varied sources and an ongoing tightness in compute supply. We have built a robust customer pipeline and have received oversubscribed demand for the cluster with multiple agreements already signed.
From a capital allocation perspective, we bring a proven track record of capital efficiency, having consistently created significant contracted value with a disciplined equity base and securing competitive financing rates. We also share YCO’s long-term view of this as foundational national infrastructure, with the partnership bringing deep ecosystem knowledge and relationships. This combination allows us to manage risk while focusing on sustainable returns.
Pre-contracted revenue, phased expansion and a local partner with deep market knowledge in YCO together address the risks. We see this as long-term national infrastructure, not a short-term bet on AI demand.
What capabilities do you expect to remain local around operations, talent and ecosystem development, and where will the project still depend on regional or global partners?
Nicholas Chia: Our ambition is for the operations, talent base and customer base to grow in the Philippines over time. That means investing in operational expertise, developing local talent and supporting homegrown businesses in pursuing AI to remain competitive.
At the same time, AI is inherently a global industry. We will continue to work closely with partners – both in the Philippines and internationally, to ensure access to leading-edge technology and expertise. The idea is to combine global capabilities with local ambition and talent, so that Philippine companies can build on world-class infrastructure at home and use it as a springboard to compete on the global stage.
Nikolas de Ynchausti: Our talent strategy focuses on maximizing local hiring under the leadership of world-class data center experts who can transfer global best practices to the local team. Once operational, the core approach centers on tapping into domestic workforce pipelines and driving upskilling initiatives. The Philippines has a rich talent pool of engineers and IT professionals that we can harness to build a scalable foundation for digital infrastructure. Furthermore, we aim to collaborate with local universities to incorporate essential digital skills into their technical and higher education curricula to enable capabilities directly aligned with industry’s needs.
The first phase is targeted for Q1 2027. What are the most important execution milestones between now and launch, and what could realistically affect that timeline?
Nikolas de Ynchausti: A key execution milestone is securing the timely delivery of Long Lead Equipment (LLE). To expedite delivery and stay on schedule, we engage directly with original equipment manufacturers (OEMs) and have strategically chosen key partners like Schneider Electric to support our project’s power and infrastructure requirements and share our commitment to going above and beyond to fulfill our project timelines.
Nicholas Chia: There are four milestones between now and launch: completing the facility and its power connection; delivering of the GPU racks and equipment; installing, commissioning and testing the clusters; and finally acceptance by our customers.
Equipment lead time is currently the major variable, with certain components like high-performance storage and memory experiencing global supply tightness. We have planned our procurement timelines around these lead times from the start of project planning, and engage on a close and frequent basis with our OEMs and other equipment partners to track progress against timelines.
Editor’s note: This Q&A has been lightly edited for clarity and TNGlobal house style. The substance of the interviewee’s responses has been preserved.
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