EXPLAINER: What is Pax Silica and why are people worried?

With artificial intelligence (AI) rapidly developing, countries are racing to keep up — and the United States is hoping to take the lead through Pax Silica.

In a "24 Oras" report, the 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 24 country signatories in this agreement.

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.

Despite criticisms against the project, the government has insisted that this was not just about the creation of AI hubs, but strengthening high-value manufacturing in the Philippines.

Department of Trade and Industry Undersecretary for Industry Development, Trade and Investment Promotions Ceferino Rodolfo said the goal of this project was to ensure that critical minerals remained in the Philippines rather than being exported.

Several environmental groups are not convinced.

Excessive consumption of water and energy

The Kalikasan People’s Network for the Environment said the Pax Silica project could have negative effects on the environment because AI facilities require massive amounts of water and electricity.

Some studies claimed that AI data centers can use upwards of 5 million gallons of fresh water in just one day.

The problem is, there is no clear source of water for the projects yet, the green group said.

Kalikasan National Coordinator Cathleen De Guzman said the Pax Silica initiative was “very much water and energy hungry.”

A verbal reassurance of environmental safeguards is not enough, De Guzman said.

Bases Conversion and Development Authority (BCDA) President and CEO Joshua Bingcang told Super Radyo DZBB that they will use surface water harvesting, which is essentially the excess rain that would go to bodies of water.

Bingcang said they will build a dam or impounding area to get the water, which can be treated and recycled.

The Palace also defended the project saying that the National Water Resources Board said there were enough sources in the area.

Addressing the concerns over excessive energy consumption, the DTI said there will be additional renewable energy facilities to generate power for the project.

It will not use existing power capacities, according to Rodolfo.

Displacement, noise pollution

On top of concerns on water and energy consumption however, Kalikasan said that the AI facility could also bring problems of noise pollution, which could disturb local wildlife such as birds.

But Rodolfo explained that they were not building an AI data center, but a factory that builds AI components.

De Guzman, meanwhile, also raised the possible displacement of around 20,000 Aetas. Bingcang denied this claim, saying that there is no ancestral domain at the project site.

Bingcang admitted that some agricultural land will be affected, but there is a livelihood program ready for the affected residents.

The BCDA President said there are only around 10 farmers affected, but 200 jobs can be generated.

On top of the possible issues that the project can bring to the community, the groups have also raised transparency concerns.

For example, the government will also not ask for rent from the developer for two years. The DTI again defended the government, saying that this was standard for large land development projects.

Foreign control and war efforts

It is not just green groups that oppose the project. The Makabayan Bloc earlier slammed the Pax Silica initiative, calling it a “war initiative" that exposed the country’s people, economy and the environment to greater risk.

Other progressive groups said the parts that will be manufactured in the hub may be used in war weapons, such as drones and missile systems.

Defense Secretary Gilberto Teodoro Jr. denied this claim as he called the project a technological endeavor.

Meanwhile, the Ibon Foundation said the Pax Silica initiative only worked to preserve foreign control in the Philippines by making the country more dependent on foreign technology and capital, all while remaining a supplier of cheap labor. — Jeanella P. Manglapuz/BAP, GMA News