Philippine President Ferdinand Marcos Jr. placed the proposed Pax Silica Industrial Hub at the center of his administration’s vision for technology-driven economic growth, describing the project as a future-oriented platform for artificial intelligence, advanced manufacturing, and global competitiveness.

In his fifth State of the Nation Address (SONA), Marcos said the New Clark City development would help position the Philippines higher in the global technology value chain while generating employment opportunities for Filipinos.

“A product of the 23-member strong and US-led Pax Silica Initiative, the Pax Silica Industrial Hub will create an ecosystem that will have AI at its core,” Marcos said.

He added, “It will bring quality jobs to our people, accelerate our industrial competitiveness, and revitalize our economy.”

Marcos further described the project as a strategic component of the Luzon Economic Corridor, saying it “will be an advanced manufacturing and logistics center in the global AI and technology value chain.”

BCDA cites investment and talent development opportunities

The Bases Conversion and Development Authority (BCDA) is supporting the President’s outlook and is advancing plans for a major AI and advanced manufacturing hub in New Clark City in the province of Pampanga, about 120 kilometers north of Manila. BCDA is the lead government agency in the planning and promotion of the proposed Pax Silica hub.

In a press briefing last week at the presidential palace, BCDA President and Chief Executive Officer Joshua Bingcang said the initiative could attract between US$40 billion and US$70 billion in investments once fully developed while creating more than 130,000 high-quality jobs for Filipinos in the planned 1,600-hectare development hub.

“Our goal, because we know there is so much talent in our country, is to become a brain-gain nation instead of a brain-drain nation,” Bingcang said in Filipino.

Bingcang underscored the project’s role in developing local talent.

Bingcang also clarified that Pax Silica is intended primarily as a manufacturing-driven industrial ecosystem designed to create high-quality employment opportunities rather than functioning largely as a data-center complex.

Addressing Challenges

The proposed high-tech manufacturing and innovation hub under the Luzon Economic Corridor that aims to position the Philippines as a key player in global supply chains for semiconductors, artificial intelligence (AI), and critical minerals. The Philippines joined the U.S.-led Pax Silica coalition earlier as its 13th member. Since then, the coalition has expanded to more than 30 participating countries.

Bingcag said the agreement could turn out as a significant milestone in the Philippine-U.S. relations and the signing of initiative could become an important highlight of the two countries’ 80 years of relationship. He noted the event could be an important sidelights of the ASEAN Summit in November in Manila if U.S. President Donald Trump decides to attend.

Bingcang, meanwhile, addressed some concerns raised about the project, including its environmental impact, water supply, among others.

A reliable electricity supply will be paramount if in case the hub pushes through, with Bingcag saying a single hyperscale data center could require between 300 to 600MW of electricity. This, he said, is being worked out in coordination with the U.S. International Development Finance Corporation (DFC), which will study the use of liquefied natural gas terminal and power plant that could generate around 1,200 megawatts.

In addition, BCDA signed an agreement with a Saudi Arabian energy developer in pursuing a proposed 500MW embedded solar power project inside the New Clark City.

On water supply, Bingcang said BCDA has identified alternative sources through a proposed surface water harvesting system that will collect and store rainwater instead of extracting groundwater. The initial facility is designed to supply up to 120 million liters per day—more than the project’s estimated daily requirement of 65 million to 90 million liters—and can eventually be expanded to 300 million liters.

Strategic Economic Play

Marcos’ SONA remarks signal the administration’s intention to position Pax Silica as a flagship industrial initiative aimed at attracting technology investments, strengthening advanced manufacturing capabilities, creating high-quality jobs, and expanding the Philippines’ role in global AI and semiconductor supply chains.

Separately, Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the Marcos administration is committed to ensuring that all project activities comply with Philippine laws and regulations.

“The President is ensuring that everything undertaken is in accordance with the law and will neither harm the environment nor displace our countrymen without appropriate measures,” Castro said.

According to Castro, government agencies will continue monitoring water resources and environmental compliance to ensure that development proceeds responsibly.

28 July 2026