‘Philippines needs power, policy to ride wave of AI surge’

MANILA, Philippines — The Philippines has a unique opportunity to ride the wave of AI-driven data center investments sweeping across Southeast Asia – but only if it can deliver the power and policy framework to support it, an international think tank said.

“This opportunity is real, but it comes with a caveat – data centers hosting AI technologies need energy on a massive scale,” said Dindo Manhit, president of Stratbase Institute.

“AI also requires robust end-to-end connectivity infrastructure. If we can align our energy strategy with this momentum, we have a real shot at attracting AI hyperscalers that can make the Philippines a major player in the global digital ecosystem.”

Manhit said while interest in the Philippines is growing, reliable power and broadband connectivity readiness will be deal-breaking requisites for data center investors. “There will be no data center boom if we cannot guarantee a power supply that is sufficient, stable and clean.”

Global trends show that AI workloads require far more electricity than traditional cloud operations. Southeast Asia’s data center capacity is expected to triple by 2030, and countries like Indonesia and Malaysia are scaling up their energy infrastructure to capture this growth.

“Those countries are pairing smart energy policies with data localization laws to attract long-term investment,” Manhit noted. “Meanwhile, the Philippines is still working to stabilize its grid and untangle energy bottlenecks.”

He warned that without a forward-looking energy plan to keep pace with AI-driven demand, the country risks being bypassed. “We cannot talk about digital transformation if we don’t solve the power equation first,” Manhit said. “Data centers need high-density, round-the-clock electricity.”

Manhit urged the Department of Energy to fast-track new base-load capacities that have long been delayed. “We need the DOE to prioritize expanding generation capacity, modernizing the grid, and clearing regulatory roadblocks. There must also be clear support for green energy options tailored for digital infrastructure.”

He also urged the Energy Regulatory Commission (ERC) to act with equal urgency, noting that the regulator plays a central role in determining how fast new power capacity comes online.

“The ERC must streamline the process for competitive selection and approvals of power supply agreements. Delays at the regulatory level are holding back critical infrastructure that will support the digital economy.”

He added that infrastructure planning must now include digital demands. “Power corridors must be built where data centers are likely to locate. Permitting must be streamlined. Energy pricing must be competitive. These are non-negotiables if we want to lead in the AI economy.”

“We support the government’s push for digitalization. But it must be matched by a power strategy that’s aggressive, realistic and future-facing,” Manhit said.