The Philippines is seeking to move higher in the global technology value chain, especially in the age of artificial intelligence (AI), through the Pax Silica initiative envisioned as an AI hub in Luzon. Yet, many fear that it comes with a cost that will ultimately sacrifice the country’s resources.
In 2025, the United States (US) formed Pax Silica to work with allied countries in securing global supply chains for semiconductors, critical minerals, and AI technologies. It aims to reduce the dependence on concentrated supply chains such as China, and to build resilient, allied manufacturing networks for advanced technology.
The Philippines formally joined the initiative on April 16, 2026 as its 13th member, and under the framework, the US plans to build a 4,000 acre high-tech industrial hub in New Clark City, Tarlac.
According to the Bases Conversion and Development Authority (BCDA), the hub is expected to attract up to $70 billion foreign investments, generate as many as 190,000 jobs, and strengthen the country’s role in global technology supply chains.
Promises vs. Peril
However, not everyone is convinced. Though the Philippines has heard similar promises in the past, many worry that the project will result in the same failures—the use of Filipinos as cheap labor to meet foreign interests.
Recently, the Kilusang Magbubukid ng Pilipinas (KMP) organized a rally alongside farmers and activists from different regions, protesting against the project. Rallyists marched to Mendiola, Manila on Oct. 21, in time for National Peasants Day, demanding the protection of land rights and opposing the proposed hub amid the El Niño crisis. Moreover, farmers, indigenous groups, and critics have raised similar concerns over its potential impact on land use, water resources, and nearby communities.
In an article on jobs and Pax Silica, non-profit organization IBON said, “Thousands of temporary to indirect jobs—construction needs or contractual workers—provide no real job security nor space for union organizing. Moreover, the promised technology transfers and upskilling are dependent on the foreign company’s needs for profit maximization, not rooted in an interest in developing the Filipino economy.”
High consumption of resources
Another problem arises due to data centers and AI hubs consuming massive amounts of energy and water.
The project is expected to require 3 gigawatts of electricity, equivalent to 16% of Luzon’s current grid capacity. This huge demand for power would further strain the country’s limited power supply and drive up the cost of electricity.
Similar to our phones that heat up during prolonged use, large computers operating in data centers generate significant heat, requiring large scale cooling systems. Full operations of the Pax Silica hub would require about 120 million liters a day, which could put pressure on the water supply of Tarlac and nearby provinces.
The BCDA clarified that every project inside Pax Silica will comply with Philippine environmental laws and environmental compliance certificate requirements. Officials said that water demand will be met through rainwater harvesting and the AI hub will have its own separate power source.
However, environmental organizations argued that regulatory compliance alone does not resolve concerns over biodiversity, watershed protection, agricultural land conversion, and cumulative environmental impacts.
Local communities outraged
Additionally, the initiative has sparked concerns about the potential displacement of Indigenous Aetas and local farmers. The BCDA also denied these allegations, claiming the hub would be built on public land not covered by ancestral domain.
“The land serves as our lives as indigenous people, it serves as our home. What about our future generations? We are doing our best to plant and have a living for our families,” Petroniza Capriz-Muñoz, Aeta chieftain of Sapang Kawayan expressed.
President Ferdinand “Bongbong” Marcos Jr. assured the public that the government will be culturally sensitive to the concerns of displacement and that the development will not endanger local livelihoods.
Despite the reassurance, indigenous groups continue to claim possession of documents proving they are long-time inhabitants of the land and warn the project could affect the burial sites of their ancestors.
Uncertainty looms over Pax Silica’s long-term sustainability and economic balance. Questions remain whether rainwater would be enough to meet Pax Silica’s projected needs during El Niño season, and whether employment gains would outweigh livelihoods potentially lost through land conversion.
Progressive groups demanding for transparency, such as the Center for Environmental Concerns–Philippines (CEC), urge for greater consultation with affected communities, like Tarlac farmers and Aeta groups, before agreements on the initiative are finalized.
“We stand with Indigenous Peoples in asserting their rights to ancestral lands and self-determination. We stand with farmers, fisherfolk, and communities in upholding our shared right to a balanced and healthful ecology,” CEC shared on a post.
The Malacañang Palace has announced that the signing of the framework agreement for Pax Silica is targeted by the end of the year. This is still an ongoing story.
