Five major American companies are exploring the possibility of establishing data center operations in the Philippines, drawn by the country’s strategic location and its potential as a regional hub for technology and digital infrastructure.
Former Department of Foreign Affairs secretary Rene Almendras, a member of the US-Philippines Society, said the US companies are eager to invest in the Philippines, but their plans depend on the government’s ability to resolve power supply challenges.
“The Philippines is in a prime position for data center operations, but a reliable and stable power grid is essential,” he said.
Almendras, who also served as Department of Energy (DOE) secretary, said that during the visit by the US-Philippines Society delegation on Feb. 1 to 11, 2025, discussions focused on the growing energy needs driven by the rapid expansion of data centers and artificial intelligence (AI).
Almendras said with hyperscalers and data centers requiring vast amounts of electricity for storage and computing, the Philippines’ energy infrastructure should be able to support such growth.
The cost of establishing data centers in the Philippines varies by scale and technology. Typically, data center construction ranges from $7 million to $12 million per megawatt.
For instance, ePLDT’s VITRO Sta. Rosa data center, which is under construction, is expected to cost about $350 million for a 50-megawatt facility.
ENDECGROUP plans to invest $2.7 billion in a 300-megawatt hyperscale data center in Tarlac, set to be completed in phases by 2026.
Almendras said the government is already working to respond to the American interest as the DOE and the Energy Regulatory Commission (ERC) are focused on enhancing the national power grid to accommodate the growing demands of data centers.
The Philippines is also exploring renewable energy sources and considering the development of small modular reactors (SMRs) in the medium term.
Almendras said that with data centers projected to significantly increase power consumption, the Philippines’ ability to meet the energy demands would be key to attracting continued foreign investments.
