Joselito Malig

Article (news)

Raphael Bosano

ABS-CBN News

<p>MANILA — Even before construction begins, the proposed Pax Silica Hub in New Clark City has become the center of a growing debate over the environmental impacts of building an artificial intelligence and data infrastructure in the Philippines. </p><p>While the government says the project could transform the country into a known player in the global AI and semiconductor supply chain, environmentalists and scientists warn that the hub&#x27;s massive demand for water and electricity could place additional strain on the already limited natural resources and nearby communities. </p><p>The Bases Conversion and Development Authority (BCDA) earlier announced that the project is expected to create thousands of jobs and attract billions of pesos in investments. </p><p>President Ferdinand Marcos Jr. also highlighted the initiative in his fifth State of the Nation Address, saying it would create quality jobs, improve industrial competitiveness and help revitalize the Philippine economy.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/29/pax-silica-will-not-affect-energy-supply-in-luzon-grid-doe-says-1447"><strong>Pax Silica will not affect energy supply in Luzon grid, DOE says</strong></a></div><p>The proposed hub will occupy more than 1,600 hectares in New Clark City—roughly equivalent to about 30 complexes of one of Asia&#x27;s largest shopping malls.</p><p>It forms part of the Pax Silica Initiative, a United States-led partnership that seeks to strengthen the supply chain for artificial intelligence, hyperscale data centers, semiconductors and critical minerals. </p><p>The Philippines joined more than 20 countries in signing the Pax Silica Declaration in April, with a framework agreement expected to be finalized later this year. Construction is targeted to begin in 2028.</p><div><br/></div><div><strong>WHY ARE ENVIRONMENTAL GROUPS CONCERNED?</strong></div><p>The biggest concern raised by environmental and scientific organizations is not the technology itself, but the enormous amount of water and electricity needed to keep AI systems and large-scale data centers running.</p><p>Unlike conventional office buildings, AI data centers house thousands of high-performance computer servers that operate all-day long. These servers inevitably generate intense heat and must be continuously cooled to prevent equipment failure.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/30/biz-group-backs-pax-silica-but-eyes-guardrails-warns-vs-blind-optimism-reflexive-opposition-1112"><strong>Biz group backs Pax Silica but wants guardrails, warns vs &#x27;blind optimism, reflexive opposition&#x27; </strong></a> </div><p>Cooling systems consume vast quantities of clean water, while the servers themselves require a stable and uninterrupted electricity supply 24 hours a day.</p><p>Because of this, large AI facilities around the world have increasingly come under scrutiny for their environmental footprint, particularly in areas already experiencing water shortages or power constraints.</p><div><br/></div><div><strong>WATER DEMAND RAISES CONCERNS</strong></div><p>The BCDA said the proposed Pax Silica Hub will use surface water and water impounding technologies, with facilities capable of supplying 65 million to 90 million liters of water per day or even higher.</p><p>The agency maintains that the project will not draw from community water supplies, saying the planned water system is designed to avoid affecting nearby residents. </p><p>Environmental groups, however, remain unconvinced.</p><p>Cathleen De Guzman of Kalikasan People&#x27;s Network questioned whether rainwater harvesting alone would be enough to meet the hub&#x27;s water requirements. </p><p>&quot;Patuloy nilang sinasabi na hindi sila gagamit ng community water. Kung hindi gagamitin yung community water at kung yung rainwater harvesting lang, sasapat ba talaga yun sa pangangailangan ng AI Hub? Malamang sa malamang yung kukunin niyang tubig ay yung surface water na magmumula sa mga ilog, magmumula doon sa mga dam na direct ang pinagkukunan ng mamamayan ng Central Luzon para sa kanilang tubig.”</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/26/scientists-farm-workers-dispute-bcda-s-pax-silica-promises-1625"><strong>Scientists, farm workers dispute BCDA&#x27;s Pax Silica promises </strong></a> </div><p>The group fears that even if water is not directly sourced from local distribution systems, drawing large volumes from rivers or dams could still compete with the water resources on which communities across Central Luzon rely, especially during droughts and declining water levels.</p><div><br/></div><div><strong>POWER CONSUMPTION UNDER SCRUTINY</strong></div><p>Environmental groups are also questioning how the facility&#x27;s enormous electricity demand will be met.</p><p>AI data centers require continuous electricity to power thousands of servers, cooling systems and networking equipment.</p><p>Recognizing these concerns, Energy Secretary Sharon Garin said the government would ensure that surrounding communities do not suffer power shortages because of the project. </p><p>Speaking to the media, she said developers may either construct their own power plant or commission dedicated power generation facilities exclusively for the hub.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/27/marcos-says-cagayan-to-host-spaceport-pax-silica-as-ticket-to-ai-industry-1914"><strong>Marcos says Cagayan to host spaceport, Pax Silica as ticket to AI industry</strong></a></div><p>&quot;It could be yung they build their own power plant, or another way is that they can get somebody to build a power plant especially for them. What we want to avoid is kahit meron kang Pax Silica or ano mang data center, ang laki laki ng demand, we don&#x27;t want na affected yung consumers outside Pax Silica, whether household or business,” she said. </p><p>Still, critics say the source of that electricity also matters, warning that if the additional power comes primarily from fossil fuels, the project could significantly increase greenhouse gas emissions.</p><div><br/></div><div><strong>&#x27;THOUSANDS OF JOBS&#x27; MAY NOT BE ENTIRELY TRUE IN THE LONG RUN</strong></div><p>Another point of contention is the government&#x27;s projection that the hub will generate thousands of jobs. </p><p>Science advocacy group AGHAM said such figures likely refer to temporary employment during the construction phase.</p><p>In a statement, the group noted that hyperscale data center campuses operated by companies such as Meta and OpenAI in North America—some spanning more than 500 hectares—typically employ only hundreds of permanent workers once operations begin. </p><p>The group argues that policymakers should carefully weigh the long-term economic benefits against the project&#x27;s environmental costs.</p><p>Concerns over the proposed hub have also reached Congress.</p><div><a href="https://www.abs-cbn.com/news/business/2026/7/27/-high-time-to-discuss-industrial-policies-amid-planned-pax-silica-hub-economist-1544"><strong>‘High time’ to discuss industrial policies amid planned Pax Silica hub — economist </strong></a> </div><p>Several lawmakers have filed a resolution seeking an inquiry in aid of legislation into the Pax Silica project. </p><p>Among the issues lawmakers hope to examine are the ownership, operation and control of the infrastructure, its implications for national security and cybersecurity, as well as its environmental impacts and sustainability measures.</p><p>Following public criticisms, Malacañang on Thursday said that provisions of the Pax Silica project may still undergo amendments. </p><p>Without revealing details, Palace Press Officer Claire Castro told the media that some provisions may still be changed to serve the interest of Filipinos, the country, and its partners.</p><div>  </div>

<p>Even before construction begins, the proposed Pax Silica Hub in New Clark City has become the center of a growing debate over the environmental impacts of building an artificial intelligence and data infrastructure in the Philippines.</p>

Even before construction begins, the proposed Pax Silica Hub in New Clark City has become the center of a growing debate over the environmental impacts of building an artificial intelligence and data infrastructure in the Philippines.

EXPLAINER: Why environmental, science groups oppose proposed Pax Silica hub in PH

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EXPLAINER: Why environmental, science groups oppose proposed Pax Silica hub in PH

Raphael Bosano,

ABS-CBN News

Published July 30, 2026 08:15 PM PHT

|

Updated July 31, 2026 10:16 AM PHT

Read More:

Pax Silica

Bases Conversion and Development Authority

artificial intelligence

data center

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