The Bases Conversion and Development Authority (BCDA) on Friday clarified that the proposed United States-led Pax Silica initiative in New Clark City, Tarlac will not house massive data centers for the growing artificial intelligence (AI) sector, but will instead serve as a manufacturing hub for semiconductors, chips, and other advanced technology products.

In an interview on DZRH's Dos Por Dos, BCDA President and CEO Engr. Joshua Bingcang said there are “misconceptions“ that the project involves building large-scale data centers, which typically require significant amounts of electricity and water.

“Maraming misconception na ito ay data center, malakas sa tubig, totoo ’yan, at kuryente. Pero hindi po. Hindi po ito ay data center… Ito po 'yung mga manufacturing plants,” Bingcang said.

He explained that the project will focus on developing advanced manufacturing facilities for the semiconductor and high-technology industries.

“The Pax Silica location is within New Clark City. In fact, New Clark City is more than 9,000 hectares, and we have already identified the different uses for the area,” he added.

Bingcang said portions of New Clark City are allocated for various purposes, including industrial areas, housing, commercial developments, and open spaces.

He noted that around 5,000 hectares of the area will remain as open space, including areas for urban farming and forest reserves.

The BCDA chief also addressed concerns raised after reports about the establishment of Pax Silica in the country, stressing that the project will not involve the construction of AI data centers.

According to Bingcang, the Philippines currently lacks sufficient power and water supply to support the operations of large hyperscale data centers.

“Mayroon po sanang gustong tumingin sa lugar na iyan na hyperscaler data center... Pinag-aralan niya ang lugar mga two months, pero umalis siya. Pinili niya ang Malaysia dahil wala tayong kuryente,” he said.

“Kung walang kuryente at walang tubig, hindi sila pupunta dahil sila mismo ay malulugi,” he added.

Bingcang said the government’s priority is to strengthen the country’s technology and manufacturing ecosystem by attracting industries similar to those found in economic zones in CALABARZON, where electronics, semiconductors, and other high-tech products are manufactured.

He said the Pax Silica project is expected to generate more employment opportunities, particularly for highly skilled Filipino workers.