Manila Electric Co. sees the Philippines as a strategic and cost-competitive destination for the global hyperscale digital infrastructure industry, narrowing a long-standing gap with regional peers.
The power retailer showcased the country’s readiness for energy-intensive digital investments during a high-level dialogue at the Asian Development Bank. In a white paper titled “Positioning the Philippines for Hyperscale Data Center Growth,” the company said the country is emerging as a Southeast Asian powerhouse with a rapidly expanding project pipeline.
The company said that hyperscale investors can access globally competitive rates through Retail Competition and Open Access (RCOA) and tax incentives under the CREATE MORE Act. These mechanisms align electricity costs within the Meralco franchise area with leading Southeast Asian markets.
Meralco vice-president and head of utility economics Lawrence Fernandez said the company’s data center portfolio has delivered sustained organic growth while building a strong investment pipeline. He noted the need to ensure the entire power system is prepared to respond to industry demands.
“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.
The effective power rate for an end-user under the Competitive Retail Electricity Market (CREM) in the Meralco franchise is about 11 US cents per kilowatthour through optimized sourcing. Fernandez said this puts the Philippines at par with Thailand and Malaysia even without government subsidies.
Recent regulatory breakthroughs led by the Anti-Red Tape Authority (ARTA) have further streamlined the process. These include the implementation of Green Lanes for strategic investments and digital permitting systems for data center developers and energy providers.
The country is also accelerating its renewable energy transition through the Green Energy Auction Program (GEAP) and Green Energy Option Program (GEOP).
Meralco said its commitment involves powering investor confidence and enabling quality jobs to ensure digital growth delivers tangible benefits to Filipino communities.
Meralco chairman and chief executive Manuel Pangilinan said the success of the sector depends on collective work across various sectors of society.
“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,” Pangilinan said.
