Rising electricity demand from data centers, driven by rapid artificial intelligence adoption, is prompting a focus on renewable energy and battery storage in the Philippines.
Arun Biswas, the Asia‑Pacific leader for strategic engagements at IBM Consulting, emphasized that the majority of data‑center power should come from renewable sources to meet future needs.
He highlighted battery energy storage systems as essential for mitigating the intermittent nature of renewable generation and preserving grid reliability.
Developing solar and wind farms in proximity to data‑center sites is seen as a strategic move to align clean energy supply with digital infrastructure growth.
The Department of Information and Communications Technology projects data‑center capacity to reach 1.5 GW by 2028, which could represent roughly 7 % to 8 % of the nation’s peak electricity demand of 19 GW to 20 GW.
While AI increases power consumption, Biswas noted that properly deployed AI can also enhance energy efficiency, creating a paradox where the technology is both a challenge and a solution.
Current grid conditions are not prepared for AI‑driven demand; substantial upgrades are required, including the integration of operational technology with information technology to enable real‑time communication between physical assets and management systems.
Integrating AI as an intelligence layer across the energy system, combined with expanded renewable capacity, could generate a positive feedback loop, positioning the Philippines to lead in sustainable digital growth.
