Philippines Pushes Pax Silica AI Hub to Bridge Digital Divide

The Department of Information and Communications Technology (DICT) said the Pax Silica initiative will help the Philippines bridge its digital divide, lending support to its own efforts to improve connectivity. “This project is really important, because it is part of our Philippine AI master plan that will help complement the digital connectivity plan of the Philippines, it is important that we put in the (fiber) backbone,” Information and Communications Technology Secretary Henry Rhoel R. Aguda told reporters. The government and private sector are currently assessing the US-led initiative’s costs and benefits, with the main objections coalescing around the possible impact of building energy and water-intensive projects in key locations like Central Luzon. The Management Association of the Philippines (MAP) called for clear safeguards that protect the national interest and the environment. In a statement on Thursday, MAP said that while the Philippines expects to climb the technology and manufacturing ladder by participating in Pax Silica, it “should neither approach Pax Silica with blind optimism nor reflexive opposition. The country should approach it as a strategic negotiation.” “MAP believes that the discussion should not be framed as whether the Philippines should categorically embrace or reject Pax Silica,” it said. “Rather, the critical issue is whether the agreements, governance structures, and implementation mechanisms can be designed in a manner that maximizes value to the Filipino people while effectively managing economic, social, environmental, and geopolitical risks.” The DICT’s Mr. Aguda assuaged environmental concerns surrounding the development of the AI hub in Clark, noting that the developers are required to set up their own power sources rather than drawing from the national grid. “Data centers even have their own desalination facilities. They take saltwater, convert it into fresh water, and reuse it. In fact, they can even provide water to surrounding communities,” Mr. Aguda said, noting that according to the plan, the water cooling the data center machinery will be recycled. The DICT said the data-center hub, with a proposed capacity of 400 megawatts, will also help position the Philippines as an emerging AI and data-center cluster. The DICT’s Philippine AI Infrastructure master plan targets about 1.5 gigawatts of data center capacity in the next seven years. The master plan outlines the DICT’s AI strategy, as well as the expansion of digital connectivity and plans for the entry of high-performance computing capability, it said. The plan contemplates the attraction of $30 billion worth of investment by 2033. Pax Silica seeks to strengthen technology supply chains and help the US counter China’s strengths in technology manufacturing. Pax Silica projects in the Philippines, headlined by the 1,620-hectare industrial and innovation district in Central Luzon with an initial investment target of $10 billion, will integrate semiconductor design, fabrication and advanced packaging, artificial intelligence computing, critical mineral processing, energy and data infrastructure, research and development, logistics, office, housing, and commercial development within the Luzon Economic Corridor. The Philippines is one of 23 signatories to Pax Silica. It joined the bloc in April. MAP said Pax Silica-related developments could help the Philippines reduce its reliance on labor exports and consumption-led growth, while upgrading its value chain from the current focus on raw or minimally processed resources. “However, these outcomes cannot be assumed. They must be deliberately negotiated, contractually protected, and institutionally monitored,” the group said. “The agreements should encourage progressive value addition in mineral processing, component manufacturing, technology development, advanced manufacturing, and research activities,” MAP said. — Beatriz Marie D. Cruz and Ashley Erika O. Jose