Pondering Pax Silica and Its Proposition for the Philippines
AI and the Environment
Artificial Intelligence (AI) is an umbrella term for technology that has the ability to process information akin to a human being. AI has been developing over the past few years because of the advancement of computers and their processing capabilities. Modern AI integration is evident in various platforms, including social media algorithms like TikTok, navigation tools such as Google Maps, and assistants like Siri and ChatGPT. Development of AI introduces a paradox: on one hand, it is a tool that aids in environmental stewardship through initiatives such as renewable energy management, climate projections, and biodiversity monitoring, but on the other hand, these systems simultaneously exert significant ecological strain (Chouksey et al., 2026). Critical minerals must be mined to manufacture computers; electronic waste is generated, which include hazardous substances like mercury and lead; moreover, significant amounts of water and electricity are required to cool down and power the data centers, respectively (UNEP, 2025). As Pax Silica has identified the Philippines as a potential data center location, a multitude of concerns have emerged across different sectors. This paper aims to explore the ramifications of Pax Silica for the country, posing important questions that must be considered in determining how to move forward.
Environmental Impact of AI
AI data centers are computer system facilities that accommodate the computation needed to support AI. Constructing these centers requires numerous minerals for each part of the circuitry, including the server boards, semiconductors, heat sinks, and storage utilizing silver, gold, copper, aluminum, and silicon, among other rare earth elements (USGS, 2025). The Philippines is abundant with these minerals. Geological surveys have found that the country has rich reserves of copper (South Cotobato, Mindanao), gold (South Cotobato, Mindanao), nickel (Bataraza, Palawan), zinc (Mankayan, Benguet), and silver (Itogon, Benguet). To date, only 5% of these reserves have been explored, and only 3% are tied to mining contracts (Carter, 2024). Despite the existence of important laws such as the Philippine Environmental Impact Statement System (PEISS), which establish mechanisms to minimize and mitigate adverse impacts of major projects, there continue to be instances of Environmental Compliance Certificates (ECCs) being revoked as mining operations fail to comply with their indicated stipulations (Villanueva, 2016). Is there any reassurance then that these measures will be able to find a balance between protecting the environment while also creating the opportunity for development? What utility does it serve when administrative procedures are disregarded, and what will serve as a safety net for the environment?
The extraction of rare earth minerals and the operational life cycle of data centers damage the environment, with impacts that are challenging to rectify. These include loss of vegetation cover, destruction of water bodies, loss of biodiversity, land-use changes, and air pollution (Worlanyo and Jiangfeng, 2021). Amidst this destruction, the minerals mined locally are exported to countries such as China, Japan, and Indonesia for downstream processing (International Trade Administration; Philippine Board of Investments). Foreign economies will reap the economic benefits from these raw materials while the native environment is left damaged. When will the Filipinos, especially the communities near the mine sites, share in these gains?
Another significant impact from AI datacenters is the significant production of electronic waste (e-waste). According to the Global E-Waste Monitor (2020), the Philippines ranks among the leading producers of e-waste within Southeast Asia, recording an estimated 3.9 kg of electronic waste per person as of 2019. These numbers paint a picture of the current problem before having data centers. How would the waste, specifically e-waste, sector look when this new industry enters the country?
A major component of data centers is the cooling systems, which maintain the temperature of the equipment to avoid overheating. Conventional methods use mechanical vapor compression refrigeration and air conditioners, but they require large amounts of energy to operate. An alternative is liquid cooling, which uses less electricity and is more efficient in bringing down the temperature (Alkrush et al., 2024). However, water cooling systems require large amounts of water. One of Google’s data centers in The Dalles, Oregon, United States (US) is reported to have used 355 million gallons back in 2021, which accounted for 29% of the total consumption of the entire City. Concerns have been raised regarding how much stress data centers are placing on the water supply, especially since the region has been experiencing drought (Lei et al., 2025). Currently, the Philippines is already experiencing water shortages in rural and urban areas, especially during the summer seasons when the dams are not easily replenished (Palanca-Tan, 2020; Lazaro, 2026). How would the fragile water system fare when data centers are introduced into the country?
Electricity serves as another critical resource demanded by data centers. The Electrical Power Research Institute has stated that, in the US, AI has consumed up to 20% of electricity in data centers and is seeing an upward trend in the coming years (Lawson et al., 2026). The power grid of the Philippines, similar to its water supply, will be strained to power this kind of infrastructure. In 2026 alone, red and yellow alerts have been issued twice since May, affecting both Luzon and Visayas Regions (Meralco, 2026; Philstar, 2026). In addition, the heat during the warmer months has been raising the demand for electricity to cool down households and other buildings, with rotating brownouts as a way to cope (Baclig, 2024). Ensuring that data centers operate continuously is a task that needs to be handled carefully. How can the volatile energy system cater to the electricity needs of the data centers without compromising the electricity needs of, and increasing costs for, citizens?
Pax Silica and the Philippines
The AI industry has been expanding, and the primary constraint to its progress is the infrastructure to process the data. At large, the technologies and industries needed for AI are dominated by China. To combat the country’s industrial prominence, the United States formed Pax Silica, a coalition of nations dedicated to securing supply chains and location assets to increase competitiveness in the growing AI industry (U.S. Department of State, 2026). Pax Silica seeks to use global partners to deploy networks of information and communications technology and data centers. The majority of its 23 signatories hold significant roles in the manufacture of semiconductors. While countries like Japan, South Korea, Singapore, and Australia bring their expertise in component production and minerals extraction, the US and Israel align with intelligence and standard setting (Gonzales, 2026).
The Philippines signed on to Pax Silica in April 2026, aligning itself with the coalition’s goals of building a global AI ecosystem attuned to the needs of the 21st Century. The country was initially eyed as a signatory for its reserve of rare earth minerals and strategic location in the region. Its membership in Pax Silica, as per the Philippine government, is a means to increase the nation’s role in the semiconductor supply chain (Musñgi, 2026). Similarly, it aims to improve economic resilience and diversify the chain of suppliers to lower dependence in times of crisis. The move also reflects the nation’s growing interest in integrating AI in its government and industries. The Department of Science and Technology’s (DOST) National AI Roadmap details millions in investments for AI-related projects that seek to integrate the technology across multiple sectors, seeking to redefine AI as an inclusionary technology for both metropolitan centers and rural communities (Dela Cruz, 2025).
As part of the agreements with Pax Silica, the Philippines has initiated partnerships with Israel’s technology and innovation sector to leverage Filipino mineral resources and workforce (Board of Investments, 2026). More importantly, the Philippines has promised a 1,619-hectare Economic Security Zone in the middle of New Clark City. The hub, dubbed the “Golden Node,” is meant to be a pioneering site for AI engineering, information, and investments in the region (Philippine News Agency, 2026). In current plans drafted between the Philippines and the US, the Golden Node will encompass mineral processing sites, advanced manufacturing, and technical research, managed through a joint governance effort between the countries (U.S. Department of State, 2026b). Its portrayal as a novel infrastructure for technological innovation is in conjunction with New Clark’s goal to be a sustainable city for the nation’s future. The hub also allows the Philippines to position itself as a regional superpower in AI technologies manufacturing and development. Despite the absence of bids for the project, the Bases Conversion and Development Authority continues to pursue the site as a center for technological development (Barro II, 2026). The Golden Node and New Clark City occupy what local authorities deem unused land, creating a productive environment out of barren spaces meant to improve quality of life across the nation.
Social Tradeoffs
Despite resounding claims of positive effects from the administration, civil society groups have scrutinized this move towards developing local AI infrastructure. Among the primary conflicts is the hub’s main construction site. New Clark City, a 9450 hectare “smart city”, is being built on the former Clark Air Base. Before its occupation, the Indigenous Aeta tribe of Sapang Kawayan had been residing in 17,000 hectares of land overlapping the base (Beltran, 2025). The BCDA claims that the city’s boundaries lie outside of recognised ancestral domains while tribe leaders identify land and rivers that will no longer be accessible upon its expansion. Families have since been told to vacate their homes to accommodate the city’s construction, with the BCDA maintaining that they have no legal claim to the land. Initial promotions of the site emphasize its vacancy (Crabb et. al., 2023), neglecting the building territorial struggle between local communities and foreign interests. This conflicts with realities that reflect colonial patterns of the accumulation of agricultural ecologies for development infrastructure. The Kilusang Magbubukid ng Pilipinas (KMP) echoes similar concerns for land use conversion and rural livelihood in their criticisms of the agreement (Gonzales, 2026a). Beyond New Clark, the establishment of an AI hub in the Philippines may add pressure to local mineral resources, amplifying extractive industries across the nation.
Within a broader geopolitical framework, there is a possibility of minimal gain and maximum risk for the country’s assets. Progressive groups list concerns for national security given the growing role of AI in contemporary warfare and in the global political divide (Johnson, 2019). While the government rejects the possible dual use of the agreement, civil society leaders critique the pledge of Philippine labor and resources to feed the US supply chain, which may be used in military applications (Buena, 2026). These sites may also be targeted during conflict, raising fears for national security and economic costs (Gonzales, 2026b).
Even without existing direct conflict, geopolitical issues affect the nation’s role within the coalition. As a whole, Pax Silica seeks to enrich the US supply chain with resources, labor, and knowledge from its signatories. The Philippine government points to this as a mutually beneficial relationship, where supply chain diversification leads to the nation’s larger role in the global AI industry. Yet, groups such as the Computer Professionals’ Union (Gonzales, 2026a) situate the nation’s minimal gain within a long chain of production. Current frameworks for the agreements echo patterns of low-value jobs and profit for the Philippines, while higher-value technology and income streams are concentrated for its counterparts overseas. These points of criticism raise a key question on AI and Pax Silica, especially for the Philippines: who will it benefit?
Moving Forward in the Digital Age
Governments are rapidly creating policies on the use of AI since it is becoming ubiquitous and deeply integrated in the lives of people at home, school, and work. However, the policies have been leaning towards ethical use in academic institutions and its relation to freedom of speech (UNESCO, 2021) without taking environmental sustainability and social implications into consideration. As the 21st century grows into a world fueled by technologies such as AI, the industry strengthens with global support. As its users, Filipinos and global citizens alike must be critical of its growing omnipresence. Despite its proclaimed importance to progress, technologies such as generative AI must not be left unquestioned, especially as its infrastructure encroaches on local ecosystems and communities. Arguments for Pax Silica hinge on its benefits to the national economy, while neglecting the potential for long-term harm. It is also crucial to develop insights into the unevenness of both potential harms and benefits, with the Philippines exposing itself to resource loss and minimal revenue. Thus, we consumers must interrogate the administration’s claims of its benefits and thoroughly understand its impacts on both the environment and Filipino society.
Note: This blog is a collaborative piece by Parabukas’ Intern's Irene Reyes and Carlo Acantilado, based on their chosen environmental issue.