The Pax Silica collaboration is a project that promises many things for the Philippines. With the potential to turn the country into a key player in the global artificial intelligence (AI) ecosystem, it could revitalize the economy and generate thousands of job opportunities. But such lofty promises do not come without risks—from the vast environmental footprint to the geopolitical risks of involving the country in a foreign economic struggle. What will the Philippines have to sacrifice for the mere promise of progress?

On April 16, 2026, the Philippines formally joined the United States (U.S.)-led Pax Silica Initiative, a collaboration of over a dozen countries, including Japan, South Korea, Australia, and Israel, aimed at building supply chains for the development of AI, semiconductor fabrication, and the mining of rare earth minerals.

Following the agreement, the government unveiled an infrastructure blueprint that includes a planned 1,619-hectare Economic Security Zone (ESZ) in New Clark City, Capas, Tarlac. According to the Bases Conversion and Development Authority (BCDA), the proposed facilities will provide the necessary infrastructure for the country to become the first “AI-native industrial acceleration hub in the Philippines.”

Despite the promised economic benefits, the project has drawn growing opposition from local communities, environmental advocates, and political activist groups. Concerns over the environmental impact of such a large-scale project, along with the geopolitical implications of becoming part of a global supply chain led by foreign powers, have left many residents fearing not only the loss of their homes and livelihoods but also the possibility of the Philippines becoming entangled in broader geopolitical conflicts.

What is Pax Silica?

Pax Silica is an alliance launched by the U.S. Department of State in December 2025 aimed at reducing U.S. reliance on China for the production of rare earth elements commonly used in chip manufacturing and AI hardware. It emerged in response to China’s export restrictions implemented in April 2025 following the massive increase in U.S. tariffs on Chinese imports. Pax Silica seeks to deepen economic and technological cooperation among U.S. allies by building an independent supply chain and reducing dependency on China. 

The Philippines, a longtime U.S. ally under the administration of President Ferdinand “Bongbong” Marcos Jr., officially agreed to join the initiative. The Department of Trade and Industry (DTI) Undersecretary and Managing Head Ceferino Rodolfo formally signed the declaration on behalf of the Philippine government. In exchange for joining the alliance, the Philippines committed to providing its “key capabilities and human talent,” along with its reserves of nickel, copper, chromite, and cobalt—critical minerals needed to expand semiconductor and electronics manufacturing supply chains.

Finance Secretary Frederick Go expressed optimism about the project, stating, “Obviously, to all of us, the technology of the future is AI and anything tech.” Go expressed enthusiasm from both the Philippines and the U.S. to move the project forward, saying that it could be “generational” for the country due to its potential to generate vast economic and employment opportunities. 

Various companies, such as Taiwanese electronics manufacturer, Foxconn, have reportedly expressed interest in the New Clark City site and are considering becoming anchor investors. With these opportunities in mind, Go believes Pax Silica will allow the Philippines to move up the global market. By harnessing its mineral resources and strategic location, he said, the country can play an active role in building the industries of the future.

Communities and activist groups weigh the costs

Public outrage against the project has come from both local communities and progressive organizations nationwide. Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA), a federation of fisherfolk communities nationwide, held protests opposing the planned ESZ, citing concerns over increased U.S. military involvement and military exercises in Philippine waters. Anakbayan has likewise opposed the initiative, arguing that it serves as a guise for U.S. imperialism and prioritizes foreign interests over the welfare of Filipinos.

Environmental groups have also raised concerns. Kalikasan PNE, a national environmental network, has warned against the establishment of additional mining facilities to harvest the needed minerals because of existing large-scale mining operations around the country. The dire consequences of the industry are already apparent as deforestation, mountain degradation, pollution of water bodies, and displacement of local and Indigenous communities are being reported.

AI infrastructure is known for its intensive water consumption because of the cooling requirements and high energy demands of data centers. An average-sized data center can cover over 100 hectares and consume around 1.1 million liters of fresh water on a daily basis. Larger facilities that cover over 1,000 hectares can consume up to 19 million liters daily. By comparison, an average household in Metro Manila consumes around 100 to 250 liters of water per day. An average rice farm consumes 4,000 liters to produce a single kilogram of rice. Viewed side by side, these figures illustrate how a single large-scale data center could significantly affect the water supply relied upon by local communities and agricultural workers.

Critics have stated their fears that the project will ultimately benefit foreign powers more than the Philippines. They see the benefits as not being worth the environmental toll it may take on the country’s land and communities. 

Public statements from officials like Go and the BCDA have largely addressed the investment progress and legal jurisdiction concerns. Malacañang has since responded, with Palace Press Officer Undersecretary Claire Castro saying that the project will comply with Philippine law and will neither damage the environment nor displace communities without appropriate compensation. Whether those assurances can quell the fears surrounding the project is something that remains to be seen. 

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For government officials, the Pax Silica Initiative represents an important moment for the Philippines’ role in global technological development. Yet the concerns raised by local communities continue to be drowned out by the headlines and promises of global innovation. From the negative environmental impact of AI infrastructure to the geopolitical implications of placing the country in the middle of competition between two global powers, many questions remain unresolved. 

Ultimately, the outcome of the project will depend on how the country balances economic progress with the protection of the environment, ancestral lands, and national sovereignty.

For now, the promises surrounding Pax Silica remain just that—promises. Whether they lead to lasting progress or lasting consequences will depend on how the promises are fulfilled—and at what cost. 

Art slider by Francesca Angela Jores