EXPLAINER: How would Pax Silica sustain its water demand?

The Pax Silica Hub is a planned high-tech industrial zone in New Clark City, Tarlac, being developed as part of the Philippines’ partnership with the United States.

The project seeks to attract investments in semiconductor manufacturing, artificial intelligence (AI), and other advanced technology industries.

The project involves the development of a 1,600-hectare AI-focused industrial hub envisioned to support critical mineral processing and the production of components for AI and semiconductor technologies.

The hub is expected to generate jobs in industries such as AI, semiconductor manufacturing, and critical minerals while creating additional revenue and tax opportunities for the Philippines.

What are some environmental concerns?

Despite the government’s projected economic benefits from Pax Silica, progressive and environmental groups, including Kalikasan and the Makabayan bloc, have raised concerns over its potential environmental and social impacts.

Kalikasan has pointed to the large amounts of water and electricity typically required by AI-related facilities.

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.

Kalikasan National Coordinator Cathleen De Guzman stressed that assurances of environmental protection should be backed by rigorous scientific studies.

The environmental group also raised concerns over high energy consumption, noise pollution, and the potential displacement of around 20,000 indigenous Aetas and local farmers.

The Bases Conversion and Development Authority (BCDA), however, disputed these claims, saying the hub would rely primarily on harvested rainwater rather than groundwater. It said impounding facilities would be constructed to collect and store rainwater for year-round use.

The agency said the approach is intended to minimize groundwater extraction, particularly amid declining water tables in parts of Central Luzon.

The BCDA also denied allegations that Pax Silica would displace 20,000 Aetas and farmers, saying the project would be built on public land not covered by an ancestral domain title.

The agency acknowledged, however, that the project would affect some agricultural plots, but said only around 10 farmers would be directly affected. It added that livelihood programs and urban farming initiatives are being prepared for those who would be displaced by the development.

The BCDA said Pax Silica would be required to secure an Environmental Compliance Certificate (ECC) and comply with applicable environmental regulations.

For its part, the Department of Trade and Industry (DTI) clarified that the Pax Silica Hub is not intended primarily for the construction of massive AI data centers in the Philippines.

Instead, it said the project would focus on manufacturing components used in AI and semiconductor technologies to help meet projected global demand.—Lyjah Tiffany Bonzo with research from GMA DigiLab/MCG, GMA News