The Tiu Family-led Pure Energy Holdings Corp. (PEHC) is making a case for artificial intelligence (AI)-powered and climate-controlled indoor farms to push the future of the local agriculture sector forward.

Pure Energy said on Wednesday that it will start constructing a pilot model for a climate-controlled indoor farm by the third quarter of the year.

The company said it will tap its subsidiaries NexGen Energy Corp. (XGEN) and Repower Energy Development Corp. (REDC) to provide 24/7 power for its planned indoor farms.

XGEN and REDC operate solar, hydropower, and wind power facilities in Bulacan, Zambales, Bataan, Cavite, Laguna, Quezon, and Camarines Sur.

“Agriculture is close to Dexter Tiu’s heart, having developed this since he was 6 years old from his grandmother who had a passion for growing plants. This is one of the key reasons why Pure Energy is venturing into this sector,” Pure Energy President Eric Y. Roxas said.

“The agricultural sector in the Philippines is one of the major components of the Philippine economy, but it continues to experience adverse impacts from various factors such as climate change,” he added.

Utilizing climate-controlled indoor environments, indoor farms can sustainably produce food year-round, regardless of external weather conditions and pests that may contaminate crops.

Likewise, a controlled environment allows for the cultivation of sweeter, healthier, greener, and crispier produce without the negative impact of insecticides and pesticides.

Roxas said the venture would allow the company to produce “designer fruit and vegetables” such as strawberries and dou miao, which he said could have a niche market and strong potential for revenue growth.

“However, we will not pursue lower-margin vegetables such as lettuces or local tomatoes given there are a dime a dozen greenhouse-grown bitter or sour produce of these everywhere,” he noted.

Pure Energy currently has operational farms in Tagaytay and Quezon, specializing in cultivating fruits.

They produce sweet red-orange jackfruit, aromatic pandan coconuts, yuzu, Amalfi lemons, and macadamia nuts. Each plant flourishes in meticulously controlled microclimate conditions to ensure optimal growth and quality.