‘Critical infrastructure investments key to unlocking Pax Silica potential’

MANILA, Philippines —  The Philippines must accelerate investments in fiber networks, data centers and other critical digital infrastructure if it wants to capture the full economic potential of the US-led Pax Silica initiative, a top geopolitical analyst said.

Stratbase Institute president Victor Andres Manhit  said the scale and technological intensity of the industries being envisioned require the country to build infrastructure ahead of demand.

Pax Silica seeks to build secure and resilient supply chains spanning artificial intelligence, semiconductors, critical minerals, advanced manufacturing, computing and data infrastructure. In the Philippines, plans include a 4,000-acre AI-native industrial hub in New Clark City, with government estimates placing potential investments at $40 billion to $70 billion.

“Pax Silica cannot run on yesterday’s digital infrastructure. If we want to attract AI, advanced manufacturing, semiconductor operations, data-intensive services and other high-value industries, we need to build the connectivity backbone capable of supporting them at scale,” Manhit said.

He said this would require expanded fiber capacity, redundant domestic and international routes, hyperscale-ready data centers, cloud connectivity, cybersecurity infrastructure and reliable links between industrial and economic zones.

The Luzon Economic Corridor provides a framework for connecting Subic Bay, Clark, Metro Manila and Batangas through transport, logistics, energy and digital infrastructure, including plans for fiber links connecting data centers, cable landing stations and business districts.

Manhit said these investments should be viewed as strategic economic infrastructure rather than purely telecommunications projects.

“Connectivity is now as fundamental to competitiveness as roads, ports and electricity. For an AI facility, a semiconductor operation, a financial services company or an advanced manufacturer, secure and reliable data connectivity is part of the production environment,” he said.

He urged government to work closely with the private sector, including through public-private partnerships, to accelerate infrastructure development.

“This is a generational opportunity to build world-class digital connectivity and position the Philippines at the nexus of the global digital economy. The private sector can provide capital, technology and operating expertise, while government should address strategic gaps, streamline permits and rights-of-way, and create the right investment environment. PPPs can help deliver critical infrastructure faster,” Manhit said.

He said the drive to attract investments under Pax Silica must also be matched by clear environmental and social guardrails, particularly as data centers, AI infrastructure and advanced manufacturing can place significant demands on power, water, land and other resources.

“We should pursue these investments with our eyes open. Other countries have already shown both the opportunities and the pressures that large-scale industrial hubs can create. The Philippines should learn from those experiences and put in place strong environmental safeguards and resource-use standards from the start,” he said.