By Sheldeen Joy Talavera, Reporter
RENEWABLE ENERGY and battery energy storage systems might be critical to meeting the Philippines’ rising electricity demand from data centers as artificial intelligence (AI) adoption accelerates, in keeping with an IBM Consulting executive.
“We must take this chance to be sure that the majority, if not all, the information center electricity demand is being powered by renewable energy,” Arun Biswas, IBM Consulting’s Asia-Pacific leader for strategic engagements, said in an interview with BusinessWorld. IBM Consulting is the skilled services and consulting arm of International Business Machines Corp. (IBM).
Mr. Biswas said battery energy storage systems would even be needed to handle the intermittent nature of renewable energy and help maintain grid reliability.
“You’ll also need to take a position in storage systems in order that they’re in a position to store electricity when it’s being generated and use it when it’s needed,” he said. “And also you can even need to usher in a way more sophisticated way of balancing the hundreds within the grid.”
He said the growing demand for digital infrastructure presents a possibility to speed up renewable energy deployment, including developing solar and wind farms near data centers.
The Department of Information and Communications Technology (DICT) expects the country’s data center capability to succeed in 1.5 gigawatts (GW) by 2028 as more operators establish facilities within the Philippines.
Mr. Biswas said the Philippines is becoming a horny location for data centers due to its growing digital economy, improving connectivity, and huge consumer market.
At peak electricity demand of 19 GW to twenty GW, data center consumption would account for about 7% to eight% of total capability.
As rising demand from data centers could strain the ability system, Mr. Biswas said AI could also help improve energy efficiency.
“That is where the paradox of AI is available in, because AI is an element of the issue, it’s also a part of the answer. So, on one hand, it consumes energy, but however, if deployed appropriately, it may possibly actually help,” he said.
Asked whether the country’s energy system is prepared for AI-driven electricity demand, Mr. Biswas said, “For the time being, it shouldn’t be,” adding that it should be “substantially upgraded to fulfill the needs of AI.”
He said operational technology systems must be integrated with information technology systems in order that physical grid assets can communicate and share data with computer-based management systems.
“When you do this, then that you must take into consideration the best way to deploy AI on top of the digital infrastructure to really help balance the operating complexity of the grid. That’s the way you will have the option to harness the complete power of AI, not in isolated fashion but as an intelligence layer for your complete energy system,” he said.
Mr. Biswas said establishing the fitting energy foundations by expanding renewable energy capability and effectively integrating it into the grid would create a “positive flywheel.”
“So, holistically, in the event you get all of these items right, I feel the Philippines is a brilliant, brilliant future and it’s a fantastic opportunity at this cut-off date for the Philippines to take the lead here,” he said.