Stratbase: PH must boost digital infrastructure for Pax Silica

MANILA, Philippines — A think tank urged the Philippine government to accelerate investments in fiber networks, data centers, and other critical digital infrastructure as the country seeks to attract high-value industries under the US-led Pax Silica initiative.

In a statement, Stratbase Institute President Victor Andres “Dindo” Manhit said the scale and technological requirements of industries envisioned under Pax Silica require the country to build infrastructure ahead of demand.

The initiative is expected to support industries involving artificial intelligence, semiconductors, critical minerals, advanced manufacturing, computing and data infrastructure, Manhit said.

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In the Philippines, plans include a 4,000-acre industrial hub designed around artificial intelligence in New Clark City. Government estimates put the potential investments linked to the project 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.

Building the digital backbone

Manhit said the country needs to expand its fiber capacity and establish backup domestic and international connections while developing data centers that can support large-scale computing operations.

He also cited the need for stronger cloud connectivity and cybersecurity infrastructure, as well as reliable digital links connecting industrial and economic zones.

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The Luzon Economic Corridor, which links Subic Bay, Clark, Metro Manila and Batangas, could provide a framework for integrating digital infrastructure with transport, logistics and energy networks, Manhit said.

Plans for the corridor include fiber connections linking data centers, cable landing stations and business districts.

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Manhit said digital connectivity should be treated as a strategic component of the country’s economic infrastructure rather than simply as a telecommunications concern.

“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 called for closer government-private sector cooperation, including through public-private partnerships (PPPs), to speed up 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.

Guardrails for investments

Manhit said attracting investments under Pax Silica should go hand in hand with environmental and social safeguards.

He noted that data centers, AI infrastructure and advanced manufacturing can place substantial 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.

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He also called for safeguards covering sovereignty, cybersecurity, critical infrastructure and community interests through transparent rules, rigorous standards and accountable institutions.

“Trusted partnerships should strengthen Philippine resilience and capability, not create new dependencies,” he said.

Manhit said the ultimate test of Pax Silica would be whether it strengthens the broader Philippine economy and creates opportunities for Filipino firms and workers to move into higher-value industries.

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“The opportunity is not simply to host new facilities. It is to build an ecosystem that allows Filipino companies, workers and innovators to move into higher-value industries. That means investing in the digital spine we need while ensuring that growth is responsible, resilient and aligned with the country’s long-term national interest,” he said. /mcm