BCDA sets 30-year development plan for Pax Silica AI hub

MANILA, Philippines — The Bases Conversion and Development Authority (BCDA) expects the full development of the Pax Silica artificial intelligence (AI) hub in New Clark City in 30 years starting 2028.

In a press briefing, BCDA president and CEO Joshua Bingcang said the development is expected to start in 2028 and involve three phases.

Led by the United States, the Pax Silica initiative aims to promote a secure and resilient supply chain for AI and semiconductors. The Philippines became part of the initiative in April.

The first phase, which will cover around 500 hectares, is expected to accommodate around 10 to 20 firms.

“We see that in three to five years,” Bingcang said.

Prior to the development, the BCDA is looking to sign the framework for the use of the AI hub with the US partner this year.

The framework will define industries that will locate in the AI hub. A commercial deal is separately being negotiated for the lease in the AI hub.

Bingcang said that an initial $10 billion will be invested by foreign locators for infrastructure such as roads, water and energy to support their requirements in the AI hub.

Amid concerns being raised about the project, he said that no hyperscalers will be built in the AI hub.

He said that an American firm earlier explored the possibility of putting up a hyperscaler facility within New Clark City, but outside of the Pax Silica hub.

The firm did not push through because of its huge power requirements.

Bingcang said that the AI hub will host the manufacture of chips used in cellphones, laptops and servers.

Trade Undersecretary Ceferino Rodolfo said in the same event that no farmers and indigenous people communities would be displaced because of the AI hub.

“New Clark City is a master planned development…There is an ECC (environmental compliance certificate) for the whole masterplan of New Clark City and it’s a titled public land for industrial use,” he said.

Earlier, Bingcang dismissed reports about BCDA offering to buy farmers’ land in the area for P30 per square meter or P300,000 per hectare by saying those belong to the government.

“How are we going to buy when it’s our land? In the first place, that’s government land,” he said.

“If there’s a disturbance, we’ll provide financial assistance. Everybody wins,” he said.

At full development, the BCDA expects potential investments in the Pax Silica AI hub to reach between $40 billion and $70 billion.

The BCDA also expects P60 billion in lease income over 25 years and P68 billion to P75 billion worth of annual tax potential.

It also estimates $200 billion worth of exports at full buildout from the Pax Silica hub.

In terms of employment, the BCDA expects the AI hub to create 130,000 to 190,000 direct jobs and 500,000 to 800,000 indirect jobs.