Tech execs push back on AI bubble warnings, cite energy as real bottleneck

MANILA — Concerns over an impending artificial intelligence bubble are overblown, tech executives said at an industry summit in Manila, saying that rapid market integration will sustain long-term growth provided countries urgently address mounting energy infrastructure bottlenecks.

Speaking on the sidelines of the AI Vision Forum, organizers Patwyn Ng and Alfa Wong pushed back against financial market warnings that massive investments in automated algorithms could trigger a market crash or fail to yield commercial returns.

“I strongly feel that the bubble will not burst, but the bubble will expand bigger and bigger because everybody is now involved in AI,” said Ng, chief operating officer of digital marketing firm A3 SEO, citing the rapid transition from traditional web search engines to AI-driven discovery platforms.

The executives dismissed fears of overinvestment in the sector, arguing that high valuations are supported by real operational utility.

“We are not worried about investment. We worry there is no investment,” Ng added. “If it works, then I don’t think that the investment is going to be wasted.”

However, the two executives also warned that the sector’s continued expansion hinges directly on expanding baseline power grids and thermal cooling capacity to support hyperscale data centers.

Wong, representing technology firm R2Y2, identified high energy tariffs and limited power generation as the primary obstacles preventing developing tech hubs from scaling their digital capabilities.

“First of all, the core of AI is actually the data centers,” Wong said. “Power is the key, because all these data centers are creating a lot of heat and you need to cool them down.”

High electricity costs in the Philippines have slowed data center expansion relative to regional peers like Malaysia, which has successfully leveraged lower energy prices and expanding solar and nuclear projects to attract major AI infrastructure investments.

“In order for the Philippines to catch up, we need to first invest in our energy infrastructure,” Wong said, calling for deeper public-private alignment on energy policy and grid modernization.

The Manila event marked the second stop of the AI Vision Forum’s international tour following its launch in Kuala Lumpur, with upcoming legs scheduled for Barcelona and Hong Kong.

Ng said the AI Vision Forum aims to bridge the global exposure gap for emerging tech talent and startups in the Philippines by providing an international platform to showcase local innovations, organizers said.

Ng noted that despite a rich pool of tech graduates, regional developers often lack the resources and exposure to bring their products to a global market.

“That’s why we are here, to give opportunity for them, job opportunity, business opportunity, and also to gain more exposure,” Ng said, saying the forum’s role is helping startups establish international branding.

Organizers highlighted that connecting local founders with international networks allows Southeast Asian tech firms to expand beyond domestic borders.