The Philippine government recently unveiled the final version of the US$ 34.4 billion Philippines AI+ Infrastructure Masterplan (PAIIM) 2026-2033 which seeks to position the country as a regional hub for artificial intelligence infrastructure, according to the Philippines News Agency.
Under the plan, the government targets a 30-fold increase in AI data center capacity by 2033, from a baseline of 50MW to 1.5 GW. The first phase is expected to deploy about 400 MW by 2030. The planned AI industry is expected to power about 152,000 graphics processing units (GPUs), a figure being used as a proxy to estimate computing capacity and electricity demand.
The Philippines has an established policy framework for AI, ranking second among ASEAN countries in an AI benchmark, behind Thailand and on par with Singapore, said Gemma Baysic, National ICT Planning, Policy and Standards Bureau Officer-in-Charge Director, Department of Information and Communications Technology (DICT). “The Philippines aims to build, host, power, and support the AI ecosystem of the future,” said Baysic.
Immediate power requirements are expected to be met partly through natural gas plants, while the government is targeting renewable sources, including solar and geothermal, to provide 40 percent of the power used by AI infrastructure by 2033. The Department of Energy (DOE) will also examine nuclear power as a longer-term option under Republic Act 12305, or the Philippine National Nuclear Energy Safety Act (PhilAtom Act).
The masterplan identifies six areas to support AI infrastructure development namely connectivity infrastructure, AI compute and data centers, sustainable energy and water sourcing, AI workforce development, policy and regulation, and demand creation and adoption.
It also identifies four corridors where the AI infrastructure will be built. The Clark-Bataan corridor is designated as the primary anchor, while the Batangas-Aurora corridor will serve as a strategic gateway. Subic and Calabarzon are identified as supporting hubs, with Cebu, Iloilo, Davao and Cagayan de Oro designated as future regional nodes.
The US$ 34.4 billion projected investment is expected to come from both public and private sources. US$ 13.5 billion (39 percent) is expected to be financed by public sources, while US$ 21 billion (61 percent) is expected to come from private investors.
The AI-driven productivity gains and new digital services are estimated to increase national GDP by 10 to 12 percent.
The masterplan cites the Philippines’ geographic location, 21 submarine cables, more than 95 percent mobile coverage and 1.3 million-strong IT-BPM workforce as factors supporting its positioning as an AI infrastructure market.
The country currently has only one AI-oriented data center facility with an installed capacity of about 50 MW, highlighting the scale of expansion required to meet projected demand.