^{Photo credit: PNA}

The Department of Energy (DOE) is closely monitoring the rapid growth of the data center industry to ensure the sector’s power demands align with the country’s energy capacity.

DOE Undersecretary Rowena Cristina Guevara said Thursday during the ABS-CBN News Channel forum “The Clean Energy Shift: Powering a Green Economy with Renewable Energy” that the agency is coordinating with the Data Center Association of the Philippines to assess the industry’s power requirements, the Philippine News Agency reports. 

Data centers currently demand about 120 megawatts (MW) of electricity, with projections pointing to a rise to around 500 MW in the coming years. Guevara emphasized that the DOE is working to balance this demand with supply, noting the government has already awarded over 1,300 renewable energy service contracts with a total capacity exceeding 150 gigawatts.

“So that means that the off take for these green energy auction winners is also guaranteed. And also with the other 1,300 renewable service contracts, there is a market for them,” Guevara said. “To us, this is exciting, especially because we’re going into AI all over the world. It will be good if we have the power, or the energy to power this up.”

In a follow-up interview, Guevara stressed the need for clarity on the industry’s long-term plans. She said she is awaiting a roadmap report from the Data Center Association of the Philippines, expected within the year. 

“We have to make sure we don’t put up too many power plants. We just need to be able to meet their demands,” she said, noting that ensuring a healthy supply-demand margin is critical in preventing sudden power outages.

How should the Philippines plan for the growing data center industry without jeopardizing power stability? Join the conversation. 

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