photo courtesy of PCO
SINGAPORE — President Ferdinand “Bongbong” Marcos Jr. expressed enthusiasm for the proposed Pax Silica industrial hub during an onstage interview with Forbes President and CEO Steve Forbes at the 24th Forbes Global CEO Conference on Thursday, October 8, amid concerns over the project’s potential effects on water resources, electricity supply and nearby communities.
In April 2026, the Philippines joined Pax Silica, a U.S.-led initiative aimed at securing artificial intelligence (AI) and semiconductor supply chains among allied countries, paving the way for a proposed 1,620-hectare industrial development in New Clark City, Capas, Tarlac.
The proposed development has an estimated investment potential of US$40 billion to US$70 billion and could generate more than 130,000 jobs upon full development, according to the Bases Conversion and Development Authority (BCDA).
During the interview, Marcos said participating in the initiative would allow the Philippines to move higher in the global semiconductor value chain.
“Pax Silica came along and we saw that it was a great opportunity for the Philippines to inhabit more of that value chain that we had already begun,” he said.
Marcos also highlighted the initiative during his 2026 State of the Nation Address on July 27, saying it could generate quality jobs, strengthen the country’s industrial competitiveness and revitalize the economy.
However, the proposed development has drawn concerns from environmental advocates, farmers, community members and other groups over its potential effects on natural resources, electricity supply, land ownership and local livelihoods.
Dr. Giovanni Tapang of science advocacy group AGHAM warned that water demand from data centers could place additional pressure on nearby communities, particularly during El Niño, when prolonged dry conditions may intensify water shortages.
“Ang isang building na itatayo nila doon ay gumagamit ng tubig ng 1,000 households equivalent sa isang araw,” Tapang said.
The comparison highlights concerns about the possible water requirements of large-scale facilities. However, the specific building capacity and the basis for the estimate must be established to determine how it applies to the proposed development.
In an August 4 opinion article published by Inquirer.net, Dr. Teodoro Mendoza, a scientist from the University of the Philippines Los Baños, estimated that the proposed Pax Silica development could require 3 gigawatts of power and 39 billion liters of water annually, with 390 to 780 hectares potentially needed for storage reservoirs.
These figures are estimates and should not be treated as finalized project requirements. As of August 2026, the Department of Environment and Natural Resources had reported that no environmental impact assessment for the proposed development had yet been applied for or processed.
Meanwhile, former Energy Secretary Jose M. Layug Jr. reportedly assured the public that the project would have its own power supply amid concerns over its projected energy demand.
The potential demand of 3 to 5 gigawatts has also raised questions about the project’s implications for electricity supply and costs. However, its eventual effect on the country’s power grid and electricity prices will depend on the project’s final requirements, energy sources and supply arrangements.
Beyond utility concerns, residents in Capas, Tarlac, have raised questions about how the proposed development could affect their land, livelihoods and communities, including the possibility of displacement and loss of agricultural areas.
“Naaawa po kami sa mga anak namin na dito na ipinanganak, mga apo namin na dito na magtatanda dapat, hindi dapat agawin yung lupa namin,” said Nora Sibal, a resident of Capas.
The Kilusang Magbubukid ng Pilipinas (KMP) also raised concerns about the potential effects of the development on agriculture, warning of possible land grabbing, displacement of farmers and Indigenous Peoples, and environmental damage associated with resource extraction.
In response, BCDA President and CEO Joshua Bingcang said the proposed project site is outside ancestral domains and assured the public that forced displacement would not occur.
“Kung mayroon mang matatamaan, nandiyan din sila. Diyan sila pupunta, same barangay, same school for their children, same neighbor,” Bingcang said.
He added that the agency was prepared to provide livelihood and employment assistance to communities that might be affected by the development.
Despite these assurances, questions remain about the project’s projected resource requirements, its potential environmental and social impacts, and the safeguards that would be implemented before construction and full development proceed.
Environmental advocates, farmers and community members continue to call for transparency, meaningful consultation and clear accountability measures to ensure that the proposed industrial hub does not come at the expense of local livelihoods and environmental sustainability.
Article by Jessica Ercilla