BCDA: No data centers in Pax Silica Tarlac site, only semiconductor manufacturing hubs

CLARK, Pampanga— The Bases Conversion and Development Authority (BCDA) on Thursday said the proposed United States-led Pax Silica initiative site in New Clark City, Tarlac would not be housing massive data centers to cater to the booming artificial intelligence (AI) sector.

In a chance interview with reporters, BCDA president and CEO Joshua Bingcang made the clarification to address what he called “common misconceptions” about the Pax Silica initiative.

“Ang proyekto na ito ay hindi data centers (This project is not about data centers),” Bingcang said.

The BCDA chief explained that the Pax Silica project in Tarlac would be similar to the special economic zones in CALABARZON, which cater to companies manufacturing electronics and modern technology components such as chips and semiconductors.

“Gagawa tayo ng mga maraming ganyang planta na makakakuha ng maraming talento (We will build many plants like that which will attract many talents),” Bingcang said.

“Ang mangyayari dito, makakaroon ng maraming trabaho… trabaho na highly skilled (What will happen here, there would be many jobs… highly skilled jobs),” he said.

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.

Bingcang said that once the Pax Silica project is in operation raw minerals, being exported by the Philippines currently, would be processed and transformed into technology components locally.

“So ‘yung isa pang concern nila on technology transfer, mangyayari ito. Sisiguruhin natin na mangyayari (So the other concern on technology transfer, it will happy. We will make sure of that),” he said.

The Department of Trade and Industry (DTI) earlier said the goal of the project is to process the country’s critical minerals and to make high-tech components for AI, rather than making AI data centers.

The Pax Silica project is being criticized by many green groups for the massive amounts of energy and water it will likely consume once built.

Some groups have alleged that the project threatens to displace agricultural land and indigenous communities.

The government, however, has continuously defended the project, reiterating that it will generate jobs and income.

The Marcos administration, in particular, assured the public that no farmers will be displaced by the proposed Pax Silica project in Tarlac, saying the site has been designated as a "buildable zone" since 2019.

Despite the criticisms, Bingcang expressed confidence that Manila and Washington will officially sign a comprehensive framework agreement under the Pax Silica initiative before the end of the year.

The Finance Department is currently working on the legal and operational groundwork for the Pax Silica initiative in the Philippines.

The BCDA chief said that once a comprehensive framework agreement is signed, the project would still undergo several layers of scrutiny.

“There will be technical, legal, and commercial [discussions… it’s like business contract. For us, this is a business contract,” Bingcang said.

“After the agreement is signed, there will be detailed planning. The detailed planning will then be reviewed by different agencies,” he said.

Malacañang earlier said provisions of the US-led initiative could still be revised if necessary.

The Department of Justice has also said it is prepared to review the legal agreements governing the initiative. —RF, GMA News