Pax Silica holds promise, but environmental impact could be a major issue
Vertiv Philippines country head Nico Echavarria, stated: “The acceleration of AI workloads, particularly those driven by large-scale models and real-time inference applications, is placing significant and growing pressure on digital infrastructure. AI readiness is no longer simply a question of digital capability but if systems can sustain the compute, power and cooling intensity of modern AI workloads.”
In March 2026, Converge ICT Solutions Inc. completed its national digital infrastructure, a full-stack architecture aimed at transforming the Philippines into a global digital hub. The company inaugurated its new Angeles Data Center in Pampanga, a scalable 12-megawatt facility designed to support high-performance computing workloads, including artificial intelligence (AI) and machine learning.
With AI rapidly developing, countries are racing to keep up — and the United States is hoping to take the lead through Pax Silica. Pax Silica is a US-led initiative and economic security framework that hopes to create a global supply chain for AI and the semiconductor industry. The Philippines is among 23 country signatories in this agreement.
The Philippines joined the Pax Silica initiative in April 2026, with the government eyeing a formal signing of the agreement in November. “We have some really big plans to bring American business jobs, investment, assistance and so much more to the Filipino people,” said US Ambassador to the Philippines Lee Lipton.
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While the project is expected to put the country on the map for emerging technologies, concerns are growing over what it could mean for the nation, with critics raising questions about its environmental, economic, and national security implications.
The term “pax” means peace or stability in Latin, while silica is the main material used in the creation of computer chips. As part of the Pax Silica effort, an AI-focused industrial hub spanning 1,600 hectares is being eyed in New Clark City in Tarlac.
The goal of the project is to process the country’s critical minerals and to make high-tech components for AI and semiconductors. Three industries are expected to create jobs because of Pax Silica, that will add to the country’s income and tax collection, namely: AI processing, chip manufacturing, and mining.
Department of Trade and Industry Undersecretary Ceferino Rodolfo said the most important thing are the critical minerals, world-class workers and strategic location. He added that the country will no longer export the unprocessed minerals and instead these will be processed, the value add remains in the country.
![Tech O'clock[cite: 4] vertical poster by Advance Solutions detailing the Pax Silica initiative, key economic sectors, and environmental concerns in the Philippines.](https://myasiph.com/wp-content/uploads/2026/10/Poster-US–Philippines-Tech-and-Nature-Divide-683x1024.png)
The project has faced criticisms, but the government has insisted that this was not just about the creation of AI hubs, but strengthening high-value manufacturing in the Philippines. Rodolfo said the goal of this project was to ensure that critical minerals remained in the Philippines rather than being exported.
However, some environmental groups are not convinced. The Makabayan Bloc said: “(Pax Silica) threatens to permanently lock the Philippines into having the highest power rates not just in Southeast Asia but in all of Asia.” They added: “The project could have negative effects on the environment because AI facilities require massive amounts of water and electricity.”
Kalikasan National Coordinator Cathleen De Guzman said the Pax Silica initiative was “very much water and energy hungry.” Verbal reassurance of environmental safeguards is not needed, what is needed is scientific data, De Guzman added.
The Bases Conversion and Development Authority (BCDA) will manage the project. They said they will not compete with the use of groundwater and instead use rain water. Engr. Joshua Bingcang, BCDA president and CEO, said they will build a dam or impounding area as sources of water and surplus water can be shared with the community.
IBON Foundation said Pax Silica is not genuine industrialization because it would leave the country dependent on foreign technology, capital, and markets while serving as a supplier of minerals and labor for export-oriented industries, rather than building a self-reliant industrial economy.
Reference: EXPLAINER: What is Pax Silica and why are people worried? | GMA News Online
