DOE Drafting Circular on Data Center Power Amid Pax Silica Concerns

The Department of Energy (DOE) announced on Tuesday that it is currently drafting a circular to outline procedures for powering data centers, a move that comes amidst growing concerns surrounding the controversial Pax Silica Industrial Hub in New Clark City, Tarlac. "Right now, we are actually drafting a circular in order for us to formulate some of the procedures like what needs to be done to install power for a data center or a hub," said DOE Secretary Sharon Garin during a virtual press conference. She further elaborated on the potential scale of power supply, stating, "Whether 50 megawatts or 100 megawatts or 5,000 megawatts, we can supply that. But we just need to make sure that anything we do to power a data center or a hub will not put the rest of the country at a disadvantage. So that our consumers here have protection." Garin's statement was made just a day after President Ferdinand "Bongbong" Marcos Jr. declared in his fifth State of the Nation Address that Pax Silica "will bring quality jobs to our people, accelerate our industrial competitiveness, and revitalize our economy." The Pax Silica initiative is a flagship project of the US Department of State focused on artificial intelligence and supply chain security, designed to advance a new economic security framework among allies and trusted partners. As part of this initiative, Manila and Washington are collaborating to establish a 4,000-acre industrial hub envisioned as a novel model for AI-focused investment within the Luzon Economic Corridor. However, progressive and environmental groups have voiced significant concerns regarding the potential environmental and social repercussions of the project. They highlight that data centers, much like electronic devices that heat up during prolonged use, house thousands of high-performance computers that generate substantial heat, necessitating large-scale cooling systems. Concerns are amplified by reports from abroad where some AI facilities reportedly consume up to 5 million gallons (approximately 18.9 million liters) of water for cooling and other operational needs, raising critical questions about how such facilities might impact local water resources. Meanwhile, DOE Undersecretary Rowena Guevarra addressed the power supply aspect, stating that power generators can commit to supplying electricity for 20 years if locators or tenants within the hub agree to stay for that long. "At the end of the day, the bottomline is that we need to be able to secure the commitment of these locators in Pax Silica. Because any generator, to put up a plant, will need 20 years to recover the cost of their investment," she explained. "If we can have those locators promise that they will be there for 20 years, we are sure that we can find the generators who will also supply the electricity to Pax Silica," Guevarra added. — VDV, GMA News