The Philippine government is set to benefit from the Pax Silica initiative, a US-led project aimed at strengthening technology supply chains and countering China's strengths in technology manufacturing. The Department of Information and Communications Technology (DICT) said the project will help bridge the country's digital divide and support its efforts to improve connectivity.
Secretary Henry Rhoel R. Aguda emphasized the importance of the project, stating that it is part of the Philippine AI master plan that will complement the country's digital connectivity plan. The government and private sector are currently assessing the costs and benefits of the project, with concerns raised about its potential impact on the environment and energy consumption.
The Management Association of the Philippines (MAP) has called for clear safeguards to protect the national interest and the environment. In a statement, MAP urged a strategic approach to the project, emphasizing the need to negotiate and contractually protect the benefits to the Filipino people while managing economic, social, environmental, and geopolitical risks.
The DICT has addressed concerns about the environmental impact of the AI hub in Clark, stating that developers are required to set up their own power sources and implement water recycling systems. The data center hub is expected to provide 400 megawatts of capacity and help position the Philippines as an emerging AI and data-center cluster.
The Philippine AI Infrastructure master plan targets 1.5 gigawatts of data center capacity in the next seven years, with a goal of attracting $30 billion worth of investment by 2033. The plan outlines the expansion of digital connectivity and high-performance computing capability, as well as the attraction of investment in the technology sector.
Pax Silica seeks to strengthen technology supply chains and promote the development of emerging technologies, such as artificial intelligence and data centers. The project aims to create a regional hub for technology development, innovation, and manufacturing, with the Philippines serving as a key location for the project.
The Philippines is one of 23 signatories to Pax Silica, and the project is expected to help the country reduce its reliance on labor exports and consumption-led growth. However, MAP emphasized the need for a strategic approach to the project, with negotiations and contractual protections in place to ensure the benefits to the Filipino people.
