Pax Silica spurs job boom dream, eco nightmare

The United States-led Pax Silica initiative could create up to 300,000 jobs for Filipinos as technology-related businesses flow into the Philippines once the AI-focused industrial hub is developed in New Clark City, Tarlac, Philippine Ambassador to the United States Jose Manuel “Babe” Romualdez said Sunday.

Romualdez made the statement amid growing concerns and criticism from various sectors, particularly environmental advocates, farmers and fisherfolk groups, over the project’s potential drawbacks, as it would cover more than 1,600 hectares and require substantial water and energy resources.

“Many businesses, especially on the technology side, will be brought to the Philippines because we have a trusted partner, the United States,” the envoy said in Filipino during a radio interview.

Pax Silica could generate businesses and thousands of jobs as early as 2027 if the Philippines gets the project underway this year, he added.

The revenue it generates could also help the country strengthen its military capabilities amid persistent tensions with China, rather than relying solely on assistance from other countries, including the United States.

“Of course, because of our Mutual Defense Treaty, it seems that the United States is also helping us. But at the end of the day, we want to be independently strong both economically and militarily,” he said.

AI hub

Pax Silica, proposed in December 2025, is an AI and advanced technology hub planned for New Clark City under the US-led initiative.

The project aims to secure supply chains for semiconductors, AI and critical minerals while reducing reliance on China, a global technology leader in green energy, high-speed rail, advanced manufacturing, AI and robotics.

The United States partnered with several countries, including Japan, South Korea, Singapore, the United Arab Emirates, Australia and the United Kingdom, to launch Pax Silica.

In April, the Philippines joined the coalition and agreed to host the industrial hub in hopes of attracting billions in investments.

However, several groups and progressive lawmakers have opposed Pax Silica, arguing that the high-tech hub’s massive cooling and processing requirements could further strain the Philippines’ already fragile power grid and water supply.

They also warned that the project could trigger power shortages and push electricity rates — already among the highest in Southeast Asia — even higher.

Power-hungry

The Bases Conversion and Development Authority, which is leading preparations for the project, estimated that Pax Silica could require up to 3 gigawatts, or 3 million kilowatts, of power.

Critics also raised concerns that the increased demand could affect agricultural and ancestral lands and create environmental risks without adequate safeguards.

Romualdez, however, criticized opponents for focusing on the negatives without considering the project’s potential benefits.

He argued that the Philippines would not have agreed to host the hub if it would compromise the country’s energy and water resources.

“That’s the problem with us. We always tend to think negatively. It’s as if we’re always immediately looking for problems. Of course, we will address those environmental concerns,” he said.

Romualdez added that the Philippines was treated “favorably” because many other countries wanted to host Pax Silica but were not given the opportunity.