As of July 28, the Philippine Department of Energy (DOE) is drafting a new circular to establish guidelines for supplying electricity to data centers, a move prompted by ongoing discussions surrounding the proposed Pax Silica Industrial Hub in New Clark City, Tarlac.
Energy Secretary Sharon Garin stated that the department is formulating standard procedures for integrating data centers into the power grid. While she noted that the country has the capacity to supply power demands ranging from 50 to 5,000 megawatts, she emphasized that new projects must not disadvantage the broader public. The framework aims to ensure that energizing these facilities does not compromise the electricity supply for regular consumers.
The Pax Silica project is a joint initiative between Manila and Washington designed to create a 4,000-acre industrial park for AI-focused investments within the Luzon Economic Corridor. However, the development has faced scrutiny from environmental and progressive groups concerned about its social and ecological footprint. Data centers rely on high-performance computers that generate significant heat and require massive cooling systems. Similar AI facilities in other countries have been reported to consume up to 5 million gallons (about 18.9 million liters) of water for operations, raising concerns about the potential strain on local water resources.
Addressing the logistics of the project’s energy needs, DOE Undersecretary Rowena Guevarra explained that securing a reliable power supply will depend on long-term commitments from the hub’s tenants. Because energy companies typically require 20 years to recover the costs of building new power plants, the government is focused on securing two-decade pledges from Pax Silica locators. According to Guevarra, securing these commitments will give power generators the confidence they need to supply electricity to the facility/Clarence Pacaña
