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The Philippines’ plan to become a regional artificial intelligence (AI) hub will require a major expansion of its power system, with the government targeting a 30-fold increase in AI data center capacity by 2033.
The Philippines AI+ Infrastructure Masterplan 2026–2033 (PAIIM) calls for AI-oriented data center capacity to rise from about 50 megawatts (MW) today to 1.5 gigawatts (GW) by 2033, with an initial 400 MW targeted by 2030.
The government estimates that the planned AI industry could require power for around 152,000 graphics processing units (GPUs), making electricity supply a critical condition for the digital infrastructure buildup.
Department of Information and Communications Technology (DICT) National ICT Planning, Policy and Standards Bureau Officer-in-Charge Director Gemma Baysic said the country aims to be more than an AI consumer.
“[The Philippines aims] to build, host, power, and support the AI ecosystem of the future,” Baysic said.
Power Supply To Grow Alongside AI Infrastructure
The masterplan identifies energy security and sustainability as one of its six strategic pillars, recognizing that the planned expansion of computing infrastructure must be matched by investments in generation, transmission, and grid reliability.
Energy Undersecretary Maria Francesca Del Rosario said the Department of Energy (DOE) would be responsible for producing the additional power required by the AI industry “without pulling electricity away from Filipino households.”
For the immediate power requirements, Del Rosario said natural gas plants would be used, while the country works toward a cleaner energy mix.
The masterplan sets a target for renewable sources to supply 40% of the electricity powering AI clusters by 2033. It prioritizes renewable and geothermal resources where feasible and considers nuclear energy as an additional source of clean and firm power, subject to safety, security, safeguards and regulatory requirements.
The plan also calls for renewable projects to be accelerated through streamlined permitting and public and private financing. Grid upgrades, new substations, transmission lines, energy storage and microgrids are likewise planned to support the additional load.
AI facilities are expected to have dual-feed power connections and N-1 redundancy, while battery energy storage systems would provide backup power and help stabilize the grid.
DOE Takes Central Coordination Role
The DOE’s role goes beyond adding generation capacity. Under the PAIIM, the department will establish an “AI Energy Readiness and Offtake Coordination Mechanism” to match AI data center demand with generation expansion, direct power supply agreements, grid connection timelines, and phased capacity commitments.
This is meant to address a major investment bottleneck identified in the masterplan: generation companies need credible customers before building new capacity, while AI and data center investors need guaranteed power availability before committing capital.
The DOE will also work with the National Grid Corporation of the Philippines, Energy Regulatory Commission, and utilities on power availability, transmission constraints, substation readiness, reserve margins, and energy costs when guiding potential data center locations.
Grid Pressure Remains A Concern
The masterplan’s assessment of the existing power system puts a spotlight on the need for new capacity.
The plan says the Philippines has about 26.1 GW of generation capacity, with coal accounting for the largest share, followed by natural gas, hydropower, geothermal, solar and wind. It also notes that dependable capacity is a more important measure for energy-intensive facilities because it reflects power that can actually be delivered after accounting for outages and other constraints.
The masterplan warns that a 1.5-GW hyperscale AI data center could consume a significant portion of the available safety margin, increasing pressure on the grid and potentially contributing to higher electricity costs. It also flags a timing problem: renewable projects can be built relatively quickly, while transmission upgrades often take longer, potentially limiting the ability to bring new clean generation to users.
The solution outlined by the government is therefore not simply to build more data centers, but to develop the power infrastructure alongside them.
The PAIIM calls for a “reliable, scalable, resilient and progressively cleaner energy mix,” backed by grid upgrades, storage, microgrids and firm or transitional capacity consistent with DOE-approved energy planning.
The masterplan’s first major project is envisioned as a carbon-neutral hyperscale AI data center campus with sustainable energy sources. It describes the project as a demonstration of the Philippines’ ability to host and operate large-scale AI infrastructure.
The AI race will therefore also be a test of its ability to deliver reliable, competitively priced, and increasingly renewable electricity. The government’s 1.5-GW AI infrastructure target can only be achieved if the power system expands at the same pace.
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