Pax Silica, a U.S. led coalition initiative to globally advance Artificial Intelligence (A.I.) and supply chain security, has been a recent topic of controversy in the Philippines; specifically with the recent announcement of the earmarked hub spanning 1,600 hectares located in New Clark City, Tarlac. The announcement, paired with aerial shots of the greenery of the location, has generated discourse among Filipinos on several media platforms, discussing concerns about the environmental impact and its effects to fellow countrymen, and other surrounding communities of the hub.
While environmental groups and the general population form discussions about the impact of Pax Silica hub located in the country, the Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer, Joshua Bingcang, in a meeting at Malacañang on Thursday, stated that the growth of Pax Silica coalition is rapid with investors swarming in to take part in leading the A.I. industry. Bingcang also projects Pax Silica to generate P180 billion for annual revenues and form over 200,000 job openings once the hub is fully operational.
BCDA’s estimate that the Pax Silica hub will create 130,000 – 190,000 jobs and 90% of this will be allocated for Filipinos, once fully operational. The workers will be designated to the hub’s partner companies in Subic and Clark. Bingcang further adds that these job opportunities for Filipinos might help in combating the brain drain phenomenon historically experienced in the past years, where Filipinos choose to work overseas in hopes of finding better opportunities.
For Filipinos, Bingcang states that the Pax Silica A.I. hub aims to provide Filipinos assistance, investments and opportunities. The government further supports the claim that the Pax Silica project will greatly add to the high-value manufacturing industry.
Beyond the lens
Pax Silica’s promise to help the country’s job market while providing numerous job opportunities and become a leading A.I. hub center is enticing for the Philippine economy and job market. For Filipinos, proper assessment for the negative environmental impacts of this project and probable contributions of the hub must be considered before the A.I. hub is fully established.
What does the AI Data hub need to function?
Water and Electricity. These are the two driving factors for sustaining an A.I. Data Hub. According to the article from Environmental and Energy Study Institute 2025, data centers have a thirst for water usage because it is used to cool the hub facilities. Simply put, as the A.I. operation systems try to meet the needs of consumers, more energy is required, resulting in overheating equipment and facilities. Water is used as a cooling system to the hub’s processing chips and to prevent overheating and potential damage.
For comparison, the article samples that a medium-sized A.I. data hub can consume 110 million gallons of water per year for cooling purposes alone. This is equivalent to the yearly water consumption for 1,000 households. This amount of consumption can threaten the existing and preserved water supply for the environment and its biological ecosystem.
In the U.S., the existence of A.I. data centers were pointed out by energy experts as a catalyst for the surge of electric prices for households. Experts also predicted that by 2028, data centers are expected to consume at least 6.7% up to 12% of total U.S. electricity.
Although only a proposal now, Pax Silica’s legacy as the country’s first AI data hub may soon be followed by the development of the A.I. industry, using the country’s natural resources and manpower to build hubs for global competition.
Pax Silica: What is the consensus?
The findings between economists, researchers, activist groups, and government advisors all point towards a pertinent question: is the Pax Silica project a net positive for Filipinos? Economists are quick to point out the employment benefits, where around a hundred thousand jobs will be created—and thus, a hundred thousand more contributors to the economy will be added. Government officials tie the project to international and global competitiveness by being ahead of the A.I. curve. Environmentalists reckon that Pax Silica will drain resources.
To look at Pax Silica as merely good or bad is to look at it through only one lens. As voting citizens, it is our imperative to consider all aspects before making an informed decision—through the power of our votes. The performance of Pax Silica should be measured in equal consideration; that being said, the consensus among the different factions is that the project’s success will be ultimately judged based on its impact on the good of the people.
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