MANILA, Philippines — The Philippines has a chance to attract major artificial intelligence (AI)–driven data center investments in Southeast Asia, but only if it can provide the necessary power and policy framework, according to international think tank Stratbase Institute.
“This opportunity is real, but it comes with a caveat — data centers hosting AI technologies need energy on a massive scale,” Stratbase president Victor Andres “Dindo” Manhit said. “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 stressed that reliable power and broadband connectivity will be deal breakers for investors. “There will be no data center boom if we cannot guarantee a power supply that is sufficient, stable, and clean,” he said.
AI workloads require significantly more electricity than traditional cloud operations, global trends show. Data center capacity in Southeast Asia is projected to triple by 2030, with Indonesia and Malaysia expanding their energy infrastructure to capture growth.
“Those countries are pairing smart energy policies with data localization laws to attract long-term investment,” Manhit said. “Meanwhile, the Philippines is still working to stabilize its grid and untangle energy bottlenecks.”
He warned that without a forward-looking energy plan, the Philippines risks being left behind. “We cannot talk about digital transformation if we don’t solve the power equation first,” he said. “Data centers need high-density, round-the-clock electricity.”
Manhit called on the Department of Energy (DOE) to fast-track new base-load capacities that have been long 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 said.
He also urged the Energy Regulatory Commission (ERC) to act with urgency, noting that its role in approving power supply agreements is critical. “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 said.
Infrastructure planning, Manhit added, must now account for 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,” he said.
“No power, no place at the table. That’s the hard truth in the AI economy,” Manhit concluded.