The Bases Conversion and Development Authority (BCDA) said that the proposed Pax Silica site in New Clark City, Tarlac will not house data centers for artificial intelligence, contrary to public perception of the US-led initiative.
BCDA president and CEO Joshua Bingcang made the clarification in a chance interview with reporters in Clark, Pampanga, addressing what he called common misconceptions about the project. The statement matters for communities near New Clark City and for Filipino workers eyeing the jobs the initiative is expected to create, since data centers and semiconductor plants carry different implications for local employment, water use, and land requirements.
“Ang proyekto na ito ay hindi data centers (This project is not about data centers),” Bingcang said.
He compared the planned Tarlac site to the special economic zones in CALABARZON, which host companies that manufacture electronics and semiconductor components. “Gagawa tayo ng mga maraming ganyang planta na makakakuha ng maraming talento (We will build many plants like that which will attract many talents),” he said, adding that the project would generate highly skilled jobs.
Pax Silica is the US Department of State’s initiative on artificial intelligence and supply chain security, built around a new economic security framework among allied and partner nations. The Philippines joined the initiative in April, becoming one of 24 global signatories alongside the European Union, Japan, India, Singapore, South Korea, and the United Kingdom. Manila and Washington are working to establish a 4,000-acre industrial hub in Tarlac, positioned as part of the broader Luzon Economic Corridor.
Bingcang said the project would allow the Philippines to process raw minerals domestically instead of exporting them unrefined, turning them 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 happen. We will make sure of that),” he said. The Department of Trade and Industry (DTI) has separately said the project’s goal is to process the country’s critical minerals and produce high-tech components, not to build AI data centers.
The project has drawn opposition from environmental groups over the volume of energy and water it is expected to require once operational, and some organizations have alleged it could displace farmland and indigenous communities. The Marcos administration has said no farmers will be displaced, noting the site has been classified as a “buildable zone” since 2019.
Bingcang said he expects Manila and Washington to sign a comprehensive framework agreement before the end of the year, despite the criticism. The Department of Finance is handling the legal and operational groundwork on the Philippine side. Once signed, Bingcang said, the agreement would still go through technical, legal, and commercial review. “There will be technical, legal, and commercial discussions… it’s like business contract. For us, this is a business contract,” he said, noting that detailed planning would follow and be reviewed by multiple government agencies.
Malacañang has said provisions of the initiative could still be revised where necessary, and the Department of Justice has said it is prepared to review the legal agreements governing Pax Silica.
