Proponents of the US-led Pax Silica project in New Clark City, Tarlac are studying the construction of a dedicated power plant, with solar energy identified as the leading option, to ensure the semiconductor and microchip manufacturing hub does not draw electricity away from nearby residential communities, the Bases Conversion and Development Authority (BCDA) said.
Pax Silica has drawn scrutiny in the Philippines over its projected resource demands, with the BCDA estimating that the facility could require up to 3 gigawatts, or 3 million kilowatts, of power once fully developed. For Filipino households and businesses in Tarlac and neighboring provinces, the central question has been whether an industrial hub of this scale would strain local electricity and water systems already serving residential communities.
BCDA officials have said addressing that concern directly has shaped the project’s utility planning from the outset, with solar generation and rainwater collection positioned as the two central pillars of the plan.
Key Details
BCDA President and CEO Joshua Bingcang said in an interview on Super Radyo dzBB that proponents are studying the establishment of a dedicated power plant so that it will not jeopardize the electricity supply, especially for residential communities, adding that the developers themselves want to avoid that outcome. Bingcang said officials have discussed power and water requirements with the project’s proponents and partners from the United States, Japan, and South Korea, who also want to ensure that the facility has sufficient utility supplies.
He explained that if these industries perceive an insufficient power supply, they will not invest in the Philippines, so partners considering the site want power that is stable, reliable, and dependable. Bingcang added that planning now extends beyond the construction of plants in New Clark City to the surrounding utility ecosystem as a whole, encompassing power and water reliability alongside infrastructure such as airports and seaports.
On the matter of energy sourcing, the BCDA said Pax Silica aims to use clean and green energy, with solar farms among the primary options being considered. Bingcang said the first option examined was solar farms, and that a solar project involving an investor from Saudi Arabia has already been approved for the area.
Solar power’s intermittency is also part of the current planning discussion. Bingcang said the Department of Energy is encouraging and regulating the use of battery storage, since solar farms generate electricity only during daylight hours and stop producing power at night, making storage systems necessary to retain energy generated by solar farms for later use.
The BCDA is also weighing a third power option in coordination with the Subic Bay Metropolitan Authority, exploring whether a power plant could be located in Subic, given its coastal access and seaport facilities, with electricity transmitted along the Subic–Clark–Tarlac Expressway corridor.
On water requirements, rainwater collection has emerged as the primary proposed solution. To address Pax Silica’s water requirements, the BCDA is considering the construction of impounding tanks to collect rainwater for industrial use.
Bingcang said the intent is to avoid wasting rainwater by storing and treating it for use in the industrial facilities, which would also be equipped with their own water recycling systems. He said engineering and technological solutions exist for these concerns and that they can be addressed, particularly with the Department of Environment and Natural Resources (DENR) involved in the process.
Project Scope
The BCDA has previously clarified that Pax Silica is not envisioned as a cluster of hyperscale data centers but as an industrial hub that would include the manufacturing of semiconductors and microchips used in computers, laptops, electric vehicles, and other technologies.
Bingcang said the project reflects an opportunity for the Philippines and its partners to process raw materials domestically rather than exporting them unprocessed, describing the facilities as modern science parks, or what US proponents have termed AI-native industrial hubs, where artificial intelligence is integrated into manufacturing and other industrial processes.
He said earlier public concern stemmed from the initial impression that the project involved massive data centers, and that the BCDA has since clarified that these are not giant or hyperscale data center facilities. Bingcang said the BCDA favors science parks over data centers because manufacturing hubs can generate technical jobs for skilled workers, including engineers, with the goal of creating higher-level employment opportunities and moving the country up the industrial value chain.
Bingcang said the government made clear from the outset that Philippine laws would govern Pax Silica, an arrangement its foreign partners have accepted. He cited established semiconductor manufacturing ecosystems in Taiwan, Singapore, and Malaysia, saying that hosting Pax Silica gives the Philippines an opportunity to catch up with its regional neighbors, noting that a failure to participate could see these investments move instead to Vietnam or Indonesia.
The BCDA said construction of the Pax Silica project has yet to begin, though it has approved two industrial parks in New Clark City where facilities under the initiative are expected to be located. Bingcang said negotiations toward a final agreement are ongoing, while the project’s partners continue to evaluate the proposed site, with the applicable legal and investment framework still under review.
