^{Meralco Vice President and Head of Utility Economics Lawrence S. Fernandez (4th from left) shares his insights in the strong potential of the country in the hyperscale data center industry among industry representatives (2nd from left, L-R) Department of Information and Communications Technology (DICT) Secretary Henry Rhoel Aguda, ePLDT and Vitro President and CEO Victor Genuino, Department of Energy Director of the Information Technology and Management Service Paolo Fondevilla, and Digital Edge Chief Commercial and Investment Officer Yaniv Ghitis.}

Manila Electric Company (Meralco) is promoting the Philippines as a viable destination for hyperscale data centers, citing reforms in the power market, renewable energy programs, and streamlined permitting as drivers for large-scale digital investments.

At a high-level dialogue on Powering the Philippines’ Competitiveness in Hyperscale and Digital Infrastructure held at the Asian Development Bank in Mandaluyong City, Meralco highlighted that the country is operationally ready to support energy-intensive digital infrastructure.

In its white paper, “Positioning the Philippines for Hyperscale Data Center Growth: Power Cost, Incentive Strategy, and Investment Readiness in Southeast Asia,” Meralco said power market mechanisms and tax incentives under the CREATE MORE Act could bring electricity costs for hyperscale investors closer to regional peers.

Lawrence S. Fernandez, Meralco vice president and head of utility economics, said perceptions of high Philippine electricity costs are shifting.

 “For years, the long-standing narrative that the Philippines has the highest power rates in the region has been one of the biggest barriers to investment. But that context is changing, and the reality today is very different,” Fernandez said.

He added that optimized sourcing under the Competitive Retail Electricity Market allows large end-users in Meralco’s franchise area to secure effective rates of about 11 US cents per kilowatt-hour—comparable to rates in Thailand and Malaysia even without subsidies.

The discussion also covered regulatory developments, including the Anti-Red Tape Authority’s Green Lane system and digital permitting processes, aimed at accelerating approvals for strategic projects. Government and industry representatives noted the role of renewable energy programs such as the Green Energy Auction Program and the Green Energy Option Program in supporting rising power demand from the digital economy.

“The supply side will be determined by infrastructure availability, readiness, and consistency – and laws providing for data sovereignty, which strongly suggests this country is serious about going digital,” Meralco Chairman and CEO Manuel V. Pangilinan said. “None of us can embark on this campaign alone. We need coordinated action across the energy and telco sectors, collaboration between government and industry, and sustained alignment between policy and design implementation.”

Meralco said attracting hyperscale investments could strengthen digital infrastructure, generate jobs, and stimulate new economic activity tied to the growing global data center industry.

What do you think about the Philippines’ prospects as a hyperscale data center hub? Share your insights on power, policy, and infrastructure challenges shaping this emerging sector.

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