Meralco PowerGen Corp. (MGEN) and VITRO REIT Inc. are exploring the development of sustainable data centers powered by renewable energy, bringing together the country’s energy and digital infrastructure sectors as demand for artificial intelligence and high-density computing continues to grow.
The two companies have signed a memorandum of understanding covering a joint feasibility study for potential digital infrastructure projects that would integrate data center facilities with power generation. The partnership will examine how reliable, competitively priced and sustainable electricity can be incorporated into future data center developments.
Under the agreement, the companies will conduct technical and commercial assessments covering possible locations, power-generation capacity, renewable energy resources, connectivity requirements, data center specifications and potential business structures.
MGEN will identify sites where data centers could be developed alongside power-generation facilities and will evaluate possible electricity supply arrangements. VITRO, meanwhile, will handle data center design and site studies, connectivity planning and discussions with potential hyperscalers and other locators.
The companies said reliable power has become an increasingly important consideration in deciding where large-scale data centers are built. The growing requirements of artificial intelligence applications and other high-density computing workloads are increasing the need for facilities that can secure stable electricity while managing energy costs and sustainability requirements.
MGEN President and CEO Emmanuel Rubio said the collaboration reflects the increasing convergence between the energy and digital infrastructure industries. He said the companies would explore ways to combine reliable, cost-competitive and sustainable power with digital infrastructure development.
VITRO President and CEO Victor Genuino said improving the cost and reliability of electricity is a key objective of the partnership because energy availability is an important factor for attracting hyperscale and artificial intelligence investments to the Philippines.
The initiative comes as the Philippines works to expand its digital infrastructure and strengthen its position as a destination for data center investments. By considering electricity supply and connectivity earlier in the development process, the partnership aims to create a more integrated proposition for companies looking to establish large-scale computing facilities in the country.
The collaboration also builds on MGEN’s growing renewable energy portfolio. Its MTerra Solar project began commercial operations for Phase 1 in August, with the facility delivering 600 megawatts of alternating-current capacity under an existing power supply agreement. The project combines large-scale solar generation with battery storage to support the power system.
For the data center industry, the proposed approach could bring power generation and digital infrastructure planning closer together. However, the MOU is still focused on feasibility studies, meaning specific project locations, capacities, investment structures and development timelines have yet to be finalized.
If viable sites and commercial arrangements are identified, the partnership could provide another pathway for expanding the Philippines’ capacity to host hyperscale and AI-focused digital infrastructure while incorporating renewable energy into the power supply equation.
