AI, Energy Costs, and Climate Change: The Challenges to Energy Security in the Philippines
3 min read
JUNE 07,2025
Energy security, rising electricity costs, and climate change are critical challenges facing industries in the Philippines. At Schneider Electric’s Innovation Day Philippines 2025, industry leaders met to discuss solutions for energy, real estate, and data centers.
AI’s Growing Energy Consumption in Data Centers
One of the key issues discussed was the rising energy consumption driven by AI. Vic Barrios, country manager of Digital Edge, explained that AI technologies are significantly increasing data center energy usage. In the Philippines, electricity costs are already double those in other ASEAN countries. This makes the situation more concerning. Without solutions to cool servers efficiently, Barrios warned, the country’s data centers could become obsolete within five to ten years.
To address this, Digital Edge is using StatePoint liquid cooling technology. This technology cuts energy consumption by 15-20% and reduces water use by 17%. It was developed by NorTek and introduced to the Philippines by Jay Park. Barrios also shared that Digital Edge now has the lowest Power Usage Effectiveness (PUE) in Southeast Asia, at 1.19.
AI, Energy Security and Climate Change: Two Major Concerns
Emmanuel Rubio, President of Meralco PowerGen Corp. (MGEN), emphasized how climate change complicates the issue of energy security. Rubio noted that energy costs must remain affordable, yet the country must also become more sustainable. The balance between meeting energy demands and minimizing environmental impact is critical for the country’s future.
To move toward a more sustainable future, MGEN is working on the MTerra Solar Project. This project is set to become the world’s largest integrated solar photovoltaic and battery storage facility. The first phase, now 42% complete, will produce 3,500 MW of solar power and store 4,500 MWh of energy. When finished, it will play a major role in increasing the country’s renewable energy capacity.
Smart Building Technologies and Renewable Energy in Real Estate
In the real estate sector, Tony Martin, President and CEO of Ayala Property Management Corp. (APMC), stressed the importance of integrating smart building technologies and renewable energy (RE). He explained that property managers must consider energy efficiency early in the design process. This is because the energy needs of a building change over time, and managing these needs is crucial for sustainability.
APMC works closely with building design teams to ensure that AI, natural ventilation, and advanced cooling systems are part of the plans. These technologies help reduce energy consumption and increase the long-term sustainability of buildings in the Philippines.
The Need for Investment and Stronger Partnerships
The panelists all agreed on one point: the need for more investment and stronger public-private partnerships. They emphasized that solving energy challenges requires collaboration across all sectors. By working together, both the private and public sectors can foster energy resilience and ensure sustainability for future generations.
Schneider Electric: Leading the Charge in Energy Innovation
At the Schneider Electric Innovation Hub, the company presented its latest AI-driven solutions for smart grids, data centers, and buildings. These solutions are designed to optimize operations, reduce emissions, and allow for quicker, more data-informed decisions in complex environments.
For the past 30 years, Schneider Electric has been a leader in energy management and automation. The company’s innovations have helped advance digital transformation and sustainability across the Philippines. Ireen Go-Catane, Schneider Electric Philippines’ Country President and CEO, highlighted that these innovations will play a significant role in shaping the future of the country’s energy landscape.
Conclusion: Innovation is the Key to a Sustainable Energy Future
The Philippines faces significant challenges, including AI-driven energy demand, rising electricity costs, and the effects of climate change. However, innovation offers solutions. From advanced cooling systems for data centers to large-scale renewable energy projects, the country is making strides toward a more energy-efficient future.
With the right investments, supportive policies, and effective public-private partnerships, the Philippines can overcome these challenges and build a cleaner, more sustainable energy future. NOWTREND
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