Pax Silica has been promised to the Filipino public as a golden opportunity for the Philippines to ride the current AI wave. Pax Silica, a US-led international initiative, has committed to raising a 4,000-acre AI hub near the developing New Clark City to make the Philippines a regional semiconductor and AI powerhouse, with estimates of “hundreds of thousands of jobs” to be generated by the initiative, according to Finance Secretary Frederick Go. Go also says the project will be "generational," expressing optimism over the initiative.
But is it truly optimistic for the Philippines to host such a hub? There have been several issues raised regarding this project. First and foremost, Pax Silica would destroy more than 4,000 acres of untouched Philippine land. While specifics of the location have not been released as they are part of ongoing negotiations, the land where the hub would be constructed would be closed off from the general public, lead to further deforestation and development of what could’ve been agricultural or protected land. Several environmental groups, including Kilusang Magbubukid ng Pilipinas (KMP), Pambansang Kilusan ng mga Samahang Magsasaka (PKSM), and Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya), says the project would further harm the already waning food security in the Philippines as it would deprive the agricultural sector of potential arable land.
Other coalitions have expressed opposition, citing the hub as dual-use. STOP US War coalition says that the extraction of rare earth materials, which are key in semiconductors, can also be used by the United States for war as the same materials can be used for the manufacturing of advanced military equipment such as fighters, missiles, and other equipment. With Israel also participating in the project, the same concerns were applied, as Philippine natural resources could be converted by Israeli defense companies into bombs which can be used by Israel to bomb its neighbors. With the hub being potentially dual-use, some groups have expressed that the hub could make the Philippines a potential target during regional conflicts.
Even without the moral and environmental concerns, the most direct effect these hubs on the general populace is its energy and water consumption. AI hubs have been known to consume copious amounts of energy and water. According to a US Congress report, a 100-megawatt data center may consume up to 2 million liters of water per day. That is equal to the water consumption of more than 13,000 people (PIDS average of 150 liters per person) and the energy consumption of more than 47,000 households (PIDS middle-income average of 210 kwh per household). Considering that the estimated consumption of the Pax Silica data center may reach up to 5 gigawatts, or 5,000 megawatts, per day, basic mathematics will tell us that the data centers would consume electricity and water equal to hundreds of thousands of Filipinos per day. Add that to the currently struggling electricity grid and water shortage; we are currently looking at a potential energy grid collapse and water crisis.
“Never look a gift horse in the mouth” is a common saying in the United States that teaches to be grateful for any gift or favor, regardless of what it is. However, we live in reality where every deal, treaty, and agreement must be scrutinized as it affects not just one but thousands of Filipino lives. The Pax Silica deal is an example of a gift horse. It can deliver massive economic benefits and provide thousands of jobs, but it can also cause irreparable damage to not just our electricity grid and water lines but also our natural environment and national security. 4,000 acre might be small in relation to the wider Philippines, but if the damage of that tiny piece of land can sweep out through the whole of Luzon, our government needs to double-check its priorities and see if this Pax Silica is not Pax Ficta (fake peace)