THE DEPARTMENT OF INFORMATION AND COMMUNICATION TECHNOLOGY (DICT) said the Pax Silica program will help the Philippines bridge the digital divide, supporting its efforts to improve communication.
“This project is really important, because it is part of our Philippine AI master plan that will help complete the digital communication system of the Philippines, it is important that we include (fiber) backbone,” Information and Communications Technology Secretary Henry Rhoel R. Aguda told reporters.
The government and the private sector are currently weighing the costs and benefits of the US-led plan, and the main objections include the potential impact of power generation and water-intensive projects in key areas such as Central Luzon.
The Management Association of the Philippines (MAP) called for clear safeguards that protect the country’s interests and the environment.
In a statement on Thursday, MAP said that while the Philippines expects to climb the technological and manufacturing ladder by participating in Pax Silica, “it should not approach Pax Silica with blind hope or unwavering opposition. The country should view it as a strategic dialogue.”
“MAP believes that this discussion should not be framed as whether the Philippines should truly accept or reject Pax Silica,” he said. “Rather, the key issue is whether agreements, governance structures, and implementation mechanisms can be designed in a way that maximizes the value of Filipinos while effectively managing economic, social, environmental, and political risks.”
Mr. DICT’s Aguda raised environmental concerns about the development of the AI hub in Clark, noting that developers need to develop their own power sources rather than drawing from the national grid.
“Data centers have their own desalination facility. They take salt water, turn it into clean water, and reuse it. In fact, they can even provide water to the surrounding communities,” said Mr. Aguda, noting that according to the plan, the water that cools the data center equipment will be reused.
The DICT said the data center facility, with a proposed capacity of 400 megawatts, will also help position the Philippines as an emerging AI cluster and data center.
DICT’s Philippine AI Infrastructure master plan targets approximately 1.5 gigawatts of data center capacity over the next seven years.
The master plan outlines DICT’s AI strategy, as well as the expansion of digital connectivity and high-performance computing power systems, it said. The program aims to attract investments worth 30 billion dollars by 2033.
Pax Silica seeks to strengthen technology supply chains and help the US counter China’s technological dominance.
The projects of Pax Silica in the Philippines, managed by an industrial district with 1,620 hectares in Central Luzon with an initial investment goal of 10 billion dollars, will include semiconductor design, advanced manufacturing and packaging, artificial intelligence computing, processing of precious minerals, energy and data infrastructure, research and development, housing development, housing development and E.
The Philippines is one of the 23 signatories of Pax Silica. It joined the bloc in April.
MAP said developments related to Pax Silica could help the Philippines reduce its dependence on labor exports and lead to consumption growth, while improving its value chain from its current focus on raw or semi-processed resources.
“However, these outcomes are unpredictable. They must be deliberately negotiated, contractually protected, and closely monitored,” the group said.
“The agreements should promote continuous value addition in mineral processing, component production, technology development, advanced manufacturing, and research activities,” MAP said. – Beatriz Marie D. Cruz again Ashley Erika O. Jose
