Amid Pax Silica concerns, DICT says modern data centers use water-recycling as cooling tech

Department of Information and Communications Technology (DICT) Secretary Henry Aguda addressed environmental issues concerning the buildup of data centers as the Philippines positions itself as a major artificial intelligence (AI) and data centers hub under the controversial US-led Pax Silica initiative.

In a press chat, Aguda told reporters that modern data centers utilize water-efficient cooling technologies such as water recycling and desalination.

"The machines are water-cooled, but the water isn't wasted. It just recirculates," the DICT chief said.

"Some data centers even have their own desalination facilities. They take saltwater, convert it into fresh water, and reuse it. In fact, they can even provide water to surrounding communities,” he said.

EXPLAINER: How would Pax Silica sustain its water demand?

Critics of the Pax Silica initiative, such as the Makabayan Bloc, claimed that the project could have negative effects on the environment because AI facilities require massive amounts of water and electricity.

Much like electronic devices that heat up during prolonged use, thousands of high-performance computers operating in data centers generate significant heat, requiring large-scale cooling systems.

Some AI facilities abroad reportedly consume up to 5 million gallons (about 18.9 million liters) of water for cooling and other operations, raising questions about how such facilities could affect local water resources.

Water recycling

Aguda, however, said Pax Silica’s location, in Tarlac, has access to river systems that could support water recycling technologies.

Meanwhile, coastal locations such as Batangas, Bataan and Cagayan are well suited for desalination systems that can utilize seawater.

Pax Silica is the US Department of State's flagship initiative on artificial intelligence and supply chain security, aimed at advancing a new economic security framework among allies and trusted partners.

The Philippines in April officially joined the Pax Silica initiative, cementing its place among other 23 global signatories, including the European Union, Japan, India, Singapore, South Korea, and the United Kingdom

As part of the initiative, Manila and Washington are working to establish a 4,000-acre industrial hub that is envisioned as a new model for AI-focused investment within the Luzon Economic Corridor.

Electricity supply

The DICT chief also dismissed concerns that the planned development would drain the country's electricity supply, saying existing and planned power projects are sufficient to support both industrial and residential demand.

"It's not like when you build a data center, you immediately consume all that power," Aguda said, noting that a new power facility in Nueva Ecija has already come online and that additional liquefiednatural gas (LNG) capacity from the Malampaya project is expected to further strengthen the country's energy supply.

"Even if nuclear power is still five to six years away, there is enough power—for the data centers and for households," he said.

The Department of Energy (DOE), on the other hand, said it is already drafting a circular on how to power up data centers amid the backlash on the controversial Pax Silica Industrial Hub.

“Whether 50 megawatts or 100 megawatts or 5,000 megawatts, we can supply that. But we just need to make sure that anything we do to power a data center or a hub will not put the rest of the country at a disadvantage. So that our consumers here have protection,” Energy Secretary Sharon Garin said in a virtual press conference.

Digital jobs

The DICT secretary, meanwhile, said his agency continues to actively promote the Philippines as a destination for global technology companies, including leading cloud service providers.

"Right now, I'm doing investment promotion. When I go around, I talk to AWS and Google and tell them, 'Locate here instead,'" Aguda said, adding that Amazon Web Services officials have already met with President Marcos to discuss potential investments.

He added that attracting hyperscale technology firms and supporting projects such as Pax Silicon are part of the government's strategy to expand the country's digital economy, create high-value jobs, and position the Philippines as a regional hub for artificial intelligence and cloud infrastructure.

“Once Pax Silicon happens... between 180,000 to 500,000 digital jobs,” Aguda said, referring to the project's potential job generation component.

"As mentioned, when the President and I sat down during USec. Jacob Helberg's visit, his opening line was, 'This can produce 500,000 jobs.," he said.

The DICT chief said the jobs would extend beyond data center operations to include technical support, artificial intelligence services, cloud computing, and other digital occupations that support the country's expanding digital economy.

President Ferdinand "Bongbong" Marcos Jr. said, in his fifth State of the Nation Address, that Pax Silica "will bring quality jobs to our people, accelerate our industrial competitiveness, and revitalize our economy." —VAL, GMA News