First Gen Corp. warned that the artificial intelligence (AI) revolution could put a strain on the Philippines’ power grid, as it would require more electricity amid a net zero transition.
First Gen chairman Federico Lopez said while technology breakthroughs like AI revolution could resolve “the world’s most intractable and wicked problems”, they could also significantly increase power demand.
“This is exciting as we acquire new and more powerful tools that enable us to go beyond historical human limits. But this is also a double-edged sword as fueling this AI revolution will now put even more strain on our power grids and the demands imposed by the energy transition to net zero,” Lopez said.
Large language models (LLMs) and generative AI are run by power-hungry data centers which consist of servers, storage systems and networking equipment.
Lopez said even prior to considerations for AI, the expectation was “we would need five times more electricity and ten times more clean electricity by 2050 to shepherd us through the three phases of decarbonization.”
“Just over the last two to three years, there’s been a growing recognition of the power requirements needed for the AI revolution currently projected to require an additional 45,000 megawatts between now and 2030,” the executive said.
He said this is adding the equivalent of what a major economy like France or Germany uses today.
Lopez said compounding this concern is global warming where the International Energy Agency noted that the extreme heat of 2024 also raised emissions and energy use considerably due to higher needs for air conditioning and cooling.
“This underscores yet another deadly feedback loop that will make solving the climate crisis even more challenging,” he said.
He said the cost of batteries and electric vehicles have been coming down fast over the last decades due to China, economies of scale and globalization.
“All these may encounter headwinds as the world deglobalizes and bifurcates further. We will need to watch this space closely but in their drive for cheaper and cleaner power many data center developers are now looking toward nuclear power,” Lopez said.
He said the Philippines continues to rely on coal for power which would nullify the decarbonizing effects of electrification. He said electric vehicles may also be effectively powered by even more coal.
“We are thus continuing to shape our platform of businesses to help shepherd our country’s energy use toward staying relevant as well as profitable in this rapidly decarbonizing world,” he said.
