Pax Silica’s mammoth power needs draw Maharlika, foreign interest

MANILA, Philippines – A growing roster of Philippine and foreign investors is exploring ways to help power the planned Pax Silica hub in New Clark City, an artificial intelligence (AI)-focused industrial enclave whose projected electricity demand could reach at least 5 gigawatts.

That power requirement is so large that the Bases Conversion and Development Authority (BCDA), the lead Philippine agency behind the project, is considering sourcing electricity from facilities outside New Clark City.

READ: 50 firms keen on PH ‘Pax Silica’ hub

This is because the 1,619-hectare complex is expected to host high-technology facilities, including data centers, which are power-intensive assets. According to the International Energy Agency, a typical AI-focused data center can consume as much electricity as 100,000 households.

“We’re looking at a power requirement so huge that we will be looking outside of our territory to come up with a power source,” BCDA president and CEO Joshua Bingcang told Inquirer editors in a roundtable discussion last week.

Maharlika ‘interested’

Bingcang said interest in the project’s energy requirements was already drawing potential investors.

Maharlika Investment Corp., which manages the country’s sovereign wealth fund, has expressed interest in supporting projects that could help supply power to the site, which is expected to break ground as early as 2028.

After all, Maharlika already has an agreement with the BCDA signed in 2024 to explore investment opportunities in New Clark City and other BCDA-managed properties in Pampanga, Tarlac and La Union.

Specifically, Maharlika is interested in a planned solar and battery energy storage facility being developed with Saudi Arabia’s Acwa Power, which has committed up to $200 million for the venture.

Another company studying a potential role is Miami-based infrastructure investor I Squared Capital, which already has investments in the Philippines through its cold-storage business.

Subic-Clark LNG pipeline

According to Bingcang, I Squared’s original proposal involved a jet fuel pipeline linking Subic, Zambales and the Clark airport complex.

However, the BCDA has asked the firm to explore the possibility of developing an alternative pipeline that would transport liquefied natural gas to New Clark City to support future power generation requirements.

“They bought the coastal petroleum depot in Subic; that’s why it makes sense for them,” Bingcang said. /atm