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The Department of Energy (DOE) is drafting new regulations to guide the development of power-generation facilities for the proposed Pax Silica technology hub, as the government seeks to ensure that the project’s massive electricity requirements do not compromise the country’s power supply.
Energy Secretary Sharon Garin said the department is preparing a circular to establish guidelines for installing generation capacity in data center hubs, particularly at the 1,600-hectare Pax Silica development in Clark.
“Right now, we are drafting a circular in order for us to formulate some guidelines when installing generation capacities in data center hubs, specifically for Pax Silica,” Garin said on Tuesday.
“There are plenty of options, but we just want to make sure that anything that we do in powering a data center hub will not put the country in a disadvantage,” she added.
Substantial Power Demand
The move comes amid concerns over the substantial electricity requirement of the planned technology hub, which government officials estimate at around 3 gigawatts. Some critics, however, have cited a possible requirement of up to 5 gigawatts once the project reaches full scale.
Energy Undersecretary Rowena Guevara said the DOE is working to align the timelines for power generation projects with the rollout of facilities inside Pax Silica to ensure sufficient supply as demand grows.
“One of the things we can immediately do for electricity contractors who are willing to locate at the data center hub is to identify what capacity they would need and to do embedded generation so they would not need to transmit it from a faraway place,” Guevara said.
She added that once the annual schedule for additional capacity inside the hub is finalized, the government can incorporate the corresponding transmission, distribution, and generation requirements into the country’s long-term energy and transmission development plans.
Guevara also stressed the need for long-term commitments from companies locating in Pax Silica, noting that power developers typically require around 20 years to recover investments in new generating facilities.
Clean Energy Strategy
The Bases Conversion and Development Authority (BCDA), which is spearheading the project, said it is pursuing dedicated energy infrastructure to prevent the hub from competing with electricity allocated for households and other consumers.
BCDA President Joshua Bingcang said the agency is prioritizing clean energy sources that meet the sustainability requirements of industries expected to locate in the technology hub, including artificial intelligence infrastructure, advanced semiconductor manufacturing, and a limited number of data centers.
“We want to be responsible with this development, we don’t want also to compete with the power supply that is earmarked for the residential, for the general population,” Bingcang said.
He explained that the project will rely on embedded power generation inside Clark, reducing dependence on electricity transmitted from distant power plants while lowering transmission-related costs.
“Una, clean and green, iyon po ang hinahanap ng mga ganitong industries, ayaw nila iyong mga fossil fuel-run na power plant, gusto nila clean and green” (“First, clean and green—that is what these industries are looking for. They do not want power plants run by fossil fuels; they want clean and green energy”), he said.
According to Bingcang, a Saudi company is developing a 500-megawatt solar farm in New Clark City, while Japanese and Korean firms have expressed interest in investing in additional clean energy projects for the hub. The BCDA is also studying the feasibility of an LNG-fired power plant as part of the project’s energy mix.
Construction of Pax Silica is expected to begin in the first quarter of 2028.
Growing Concerns
Despite the government’s assurances, the Makabayan bloc has warned that the project’s energy requirements could place additional strain on the country’s power system and contribute to higher electricity prices.
In a joint statement, ACT Teachers Rep. Antonio Tinio, Gabriela Women’s Party Rep. Sarah Jane Elago, and Kabataan Rep. Renee Louise Co argued that Pax Silica’s projected demand could worsen pressure on the national grid, trigger power shortages, and increase electricity costs.
The lawmakers also questioned plans to develop supporting energy infrastructure, including an LNG pipeline between Subic and Clark, as well as investments in solar and battery storage, claiming these could increase the country’s dependence on foreign-controlled energy assets.
The group called on the Marcos administration to suspend the project and conduct a comprehensive national energy audit before proceeding, while prioritizing electricity access for underserved communities and critical public services.
Government officials, however, have maintained that Pax Silica is expected to attract investments, create jobs, and position the Philippines as a strategic hub in global semiconductor, artificial intelligence, and critical mineral supply chains. The project also forms part of the Luzon Economic Corridor, a development initiative jointly backed by the Philippines, the United States, and Japan.
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