With the data center industry poised for massive growth, industry leaders urge the government to develop new power projects specifically for these facilities to safeguard residential power prices and enable AI adoption.

As the Philippines positions itself as a regional hub for digital infrastructure, industry leaders are calling for a clear, government-led plan to meet the growing electricity demand of data centers without pushing up household electricity costs, PNA said in a report. 

First Gen Energy Solutions President and COO Carlos Lorenzo Vega emphasized this during the Executive Roundtable Summit 2025 of the Data Center Association of the Philippines (DCAP) held in Makati on April 29. Vega warned that data centers could consume as much as 1 gigawatt of electricity annually—twice the typical growth of the country’s power demand.

“There has to be a specific plan to serve data centers because their load is not like

the growth we experience in othe r sectors,” Vega told PNA. “Power plants have to be developed specifically for data center growth.”

DCAP

is aiming to develop 1 gigawatt of IT load capacity by 2029. Achieving this goal is expected to require at least USD18 billion in investment, according to DCAP Chairperson Steven Davis.

Vega’s comments come at a time when demand for digital storage and computing capacity is surging globally. As hyperscale firms expand into Southeast Asia, the Philippines has become an attractive location due to its strategic geography and improving connectivity.

But experts warn that unplanned exp

ansion could strain the country’s already tight power supply. Without dedicated energy infrastructure, data centers could end up competing with homes and businesses for electricity.

Global AI Council Philippines co-founder Antonilo Mauricio echoed these concerns. He pointed out that widespread AI adoption will require stable power access, but many parts of the Philippines still struggle with basic electrification.

To protect residential consumers, energy advocates are pushing for long-term investments in clean and reliable generation capacity tailored for data centers. They are also urging the Department of Energy to develop policies that ensure cost allocation is fair across all sectors.

Government support will be critical in designing future-ready power infrastructure that meets the high energy demands of data processing while shielding the public from price volatility.

How can the Philippines balance digital growth with energy equity? Share your thoughts below.

Follow Power Philippines on Facebook and LinkedIn for more updates. 

Photo Credit: PNA Website